tm 


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The  Railways  of  South 
and  Central  Ami  erica 

A  Manual  Containing  Statistics  and 
other  Information  Concerning  the  Im- 
portant Railways  of  South  and  Central 
America, Mexico  and  the  West  Indies 


. ,  ... ...  ■    . 


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The  Railways  of  South 
and  Central  America 

A  Manual  Containing  Statistics  and 
other  Information  Concerning  the  Im- 
portant Railways  of  South  and  Central 
America,  Mexico  and  the  West  Indies 

Frederic   M.   Halsey 

With    Jas.    H.    Oiiphant    &    Co.,    Bankers,    New    York 


1914-  Edition 


Francis  Emory  Fitch,  Incorporated 
Publishers  to  the  American  Banker 
Forty-Seven  Broad  Street,  New  York  City 


COPYRIGHT    1014-.    .JOHN    K.    FITCH 


Typography,  Presswork  and  Binding 
by  Francis  Emory  Fitch,  Incorporated, 
of  Forty-Seven   Broad   St.,   New  York 


i  :  ■ 
H 


PREFACE. 

This  volume  is  compiled  with  the  idea  of  giving  a  brief  de- 
scription of  a  number  of  the  railways  operating  in  South  and 
Central  America,  Mexico  and  the  West  Indies,  and  is  divided 
into  three  parts: 

I.     South  America. 
II.     Mexico,  Central  America  and  Panama. 
III.     The  West  Indies. 

The  method  used  in  compiling  this  book  will  commend  itself 
readily  to  the  reader.  Each  of  the  three  parts  is  divided  into 
chapters,  each  of  which  covers  a  country,  or  a  group  of  countries, 
islands,  etc.;  and  contains:  (1)  a  description  of  the  railway 
development  in  and  other  information  regarding  the  country 
or  countries:  (2)  tables  (where  possible)  and  notes  giving  details 
as  to  capitalization,  mileage,  earnings,  financial  condition,  amount 
of  freight  and  number  of  passengers  handled,  history,  location 
and  nature  of  country  traversed  by  each  of  the  various  railway 
lines  under  discussion.  The  Tables  in  a  majority  of  cases  are 
rendered  expressed  in  Pounds  Sterling  and  American  Gold;  for 
convenience  sake  the  basis  of  $5.00  per  £  is  used.  At  the  end 
of  the  book  will  be  found  Appendices  containing  additional 
information  of  interest. 

The  opening  of  the  Panama  Canal  in  the  immediate  future 
and  the  rapid  development  of  Latin  America,  particularly  Argen- 
tine, Brazil,  Chili  and  Uruguay,  is  attracting  a  great  amount 
of  interest  throughout  the  United  States,  and  the  writer,  who 
for  a  number  of  years  has,  in  the  capacity  of  Statistician  for  Messrs. 
Jas.  H.  Oliphant  &  Co.,  New  York  and  Chicago,  assisted  Mr. 
Floyd  W.  Mundy  in  the  compilation  of  the  "Earning  Power  of 
Railroads,"  has  felt  the  necessity  of  a  volume  covering  briefly  the 
.  railways  operated  in  American  Countries  other  than  the  United 
States  and  Canada. 

The  compilation  of  this  manual  has  necessitated  a  considerable 
amount  of  labor;  the  official   annual   reports  of  the  companies 


31 20Kf> 


under  review  not  being  obtainable,  except  in  a  few  instances,  in 
the  United  States;  other  information  being  generally  hard  to 
obtain  and  often  conflicting.  Every  possible  endeavor  has 
been  made  to  make  the  book  fully  accurate.  A  few  details  have 
been  added,  unusual  for  a  Statistical  Volume,  such  as  a  brief 
account  of  the  building  of  Meiggs'  famous  Oroya  or  Central 
of  Peru  Ry.,  "the  highest  line  in  the  world,"  which  reaches  the 
altitude  of  15,865  feet;  details  of  the  loans  contracted  by  Hon- 
duras in  the  building  of  its  ill-fated  Trans-Continental  Ry.,  etc. 
In  conclusion  the  writer  wishes  to  express  his  thanks  to  the 
Pan-American  Bureau,  Washington,  D.  C,  for  permission  to  use 
the  Map  of  the  Railways  of  Latin  America,  to  be  found  at  the 
front  of  the  volume  and  for  other  information  furnished  him. 

Frederic  M.  Halsey. 


CONTENTS 


PAGE 

Preface vii 

Introduction  by  Floyd  W.  Mundy xiii 

PART  I— SOUTH  AMERICA 

Argentine  Republic 9 

Bolivia  and  Chili 35 

Brazil 47 

Colombian  Republic 64 

Ecuador '. 74 

Guiana — British,  Dutch  and  French 77 

Paraguay 80 

Peru 83 

Uruguay 95 

Venezuela 106 

PART  II— MEXICO,   CENTRAL  AMERICA  AND    PANAMA 

Mexico 119 

Guatemala,  Salvador  and  British  Honduras 132 

Honduras,  Nicaragua  and  Costa  Rica 138 

Panama 143 

PART   III— THE   WEST   INDIES 

Cuba 149 

Haiti  and  Santo  Domingo 159 

Porto  Rico  and  Jamaica 163 

Barbados,  Trinidad,  Martinique  and  Other  Islands  of  the  West  Indies.  .  166 

APPENDICES 

I  Mileage  of  Railways  by  Countries 169 

II   Latin  American  Trade 170 

III  Chronology 171 

IV  Quotations — Latin  American  Railway  Securities 172 

ILLUSTRATIONS  AND   MAPS 

Pan-American   Building,  Washington,  D.  C Frontispiece 

Map — The   Railways  of  Latin  America xii 

Map — Brazil  Ry 49 

Map — Madeira-Mamore   Ry 59 


INDEX 

PAGE 

American  R.  R.  of  Porto  Rico 164 

Antofagasta  (Chili)  &  Bolivia  Ry 39 

Argentine  Republic 9 

Argentine  Ry 11 

Argentine  Great  Western  Ry 13 

Argentine  North  Eastern  Ry 1 

Argentine  Transandine  Ry 15 

Argentine  Union  Ry 16 

Bahia  Blanca  &  North  Western  Ry 17 

Barbados,  Trinidad,  Martinique,  etc 166 

Barranquilla  Ry.  &  Pier  Co.  (Colombia) 67 

Bolivar  Ry.  (Venezuela) 108 

Bolivia 35 

Bolivia  Rv 41 

Brazil 47 

Brazil  Ry 49 

Brazil  Great  Southern  Ry 53 

Brazil  North  Eastern  Ry' 55 

British  Honduras 133 

Buenos  Ayres  &  Pacific  Ry 18 

Buenos  Ayres  Central  Ry 20 

Buenos  Ayres  Great  Southern  Ry 23 

Buenos  Ayres  Midland  Ry 21 

Buenos  Ayres  Western  Ry 25 

Central  Argentine  Ry 27 

Central  of  Peru  Ry 87 

Central  R.  R.  of  Haiti '.  .  159 

Central  Ry.  of  Chubut  Co 31 

Central  Ry.  of  Ecuador 75 

Central  Uruguav  Ry.  of  Monte  Video 97 

Cerro  de  Pasco  'Ry.'  (Peru) 88 

Chili 37 

Chilian  Transandine  Ry 43 

Chimbote  Ry.  (Peru) 89 

Colombian  Republic 64 

Colombian  National  Ry 68 

Colombia  Ry.  &  Navigation  Co 70 

Cordoba  Central  Ry 29 

Costa  Rica 141 

Costa  Rica  Ry 142 

Cuba 149 

Cuba  R.  R 150 

Cuban  Central  Ry 152 

Demerara  Ry 78 

Dorada  Extension  Ry 71 

Ecuador 74 

Entre  Rios  Ry „ 32 

Great  Western  Ry.  of  Brazil 56 

Guantanamo  &  Western  R.  R 154 

Guaqui-La  Paz  Ry.  (Bolivia) 42 

Guatemala 132 

Guayaquil  &  Quito  Ry 75 

Guiana — British,  Dutch  and  French 77 


INDEX 

PAGE 

Haiti  and  Dominican  Republic 159 

Honduras 138 

Ilo-Moquequa  Ry.   (Peru) 89 

International  Rys.  of  Central  America 134 

Interoceanic  Ry.  of  Mexico 121 

La  Guaira  &  Caracas  Ry 110 

Leopoldina  Ry 58 

Madeira-Mamore  Ry 59 

Mexican  Ry 123 

Mexican  Northern  Ry 124 

Mexico 119 

Midland  Uruguay  Ry 101 

National  R.  R.  of  Haiti 160 

National  Rys.  of  Mexico 125 

Nicaragua 141 

Nitrate  Rys 45 

North  Western  of  Uruguay  Ry 102 

North  Western  Ry.  of  Peru 90 

Pacasmayo  &  Guadalupe  Ry.  (Peru) 91 

Pacific  Ry.  of  Nicaragua ■  141 

Panama 143 

Panama  R.  R 144 

Paraguay 80 

Paraguay  Central  Ry 81 

Payta  to  Piura  Ry  .    (Peru) 91 

Pefu    (Peru) 83 

Peruvian  Corporation 85 

Pisco  to  lea  Ry 92 

Porto  Rico  and  Jamaica 163 

Porto  Rico  Rys 165 

Puerto  Cabellos  &  Valencia  Ry 112 

Salvador 132 

Salvador  Ry 136 

Samana  &  Santiago  Ry 161 

San  Paulo  Ry 61 

Santa  Marta  Ry 72 

Southern  Pacific  R.  R.  of  Mexico 130 

Southern  Ry.  of  Peru 92 

State  of  Bahia  Southwestern  Ry 63 

Trujillo  Ry.  (Peru) 93 

United  Rys.  of  the  Havana  &  Regla  Warehouses 155 

Uruguay 95 

Uruguay  East  Coast  Ry 103 

Uruguay  Northern  Ry 104 

Venezuela 106 

Venezuela  Central  Ry 114 

Villa  Maria  &  Rufino  Ry 34 

Western  Ry.  of  Havana 157 


INTRODUCTION. 

During  the  past  ten  years,  and  especially  during  the  past  two  or 
three  years,  there  has  been  awakened  throughout  the  United  States 
a  lively  interest  in  our  sister  Republics  in  South  America.  Realiz- 
ing that  with  the  opening  of  the  Panama  Canal  new  currents  of 
trade  will  be  created,  North  American  merchants  and  manufac- 
turers and  financial  and  diplomatic  interests  have  been  studying 
more  closely  than  ever  before  the  commercial,  economic  and  social 
conditions  of  our  southern  neighbors.  European  nations  have  for 
years  commanded  the  lion's  share  of  South  America's  trade;  with 
the  opening  of  the  Panama  Canal  the  United  States  will  "have 
decided  economic  advantages  in  developing  commerce  with  South 
America  owing  to  the  factors  of  time  and  distance;  the  importance 
of  the  Panama  Canal  in  relation  to  these  factors  is  gained  by 
reference  to  the  fact  that  the  Canal  itself  and  the  western  coast  of 
South  America  are  about  due  south  of  the  eastern  coast  of  the 
United  States. 

South  America  presents  itself  as  the  natural  field  for  the 
extension  of  our  foreign  trade.  With  our  awakening  interest 
in  the  vast  areas  and  possibilities  and  in  the  remarkable 
agricultural,  mining  and  commercial  resources  of  the  Southern 
Republics,  there  has  come  to  us  a  knowledge  of  their  material 
progress  during  recent  years.  A  number  of  these  republics  are 
indeed  modern  countries,  a  rapidly  increasing  number  of 
their  cities  are  adorned  with  magnificent  boulevards,  parks 
and  public  buildings  and  served  by  well  equipped  traction  lines, 
electric  lighting,  gas  and  water  works;  the  educational  advan- 
tages offered  by  South  American  universities,  professional 
schools,  libraries,  etc.,  are  liberal  beyond  the  conception  of  most 
North  Americans. 

Perhaps  in  no  phase  of  'ts  material  progress  has  Latin  America 
made  greater  strides  than  in  the  extension  and  development  of  its 
transportation  systems.  In  a  large  majority  of  these  republics 
extensive  plans  have  been  worked  out  and  pursued  in  the  matter 
of  building   lines   in   aid   of  the   exploitation   of  the  resources  of 


Central  and  South  America.  Foreign  capital  amounting  to  scores 
of  millions  sterling  has  been  enlisted  in  the  building  of  railroad 
lines.  In  more  recent  years  capital  to  a  large  aggregate  amount 
from  the  United  States  has  sought  investment  in  South  American 
railroads. 

Recognizing  the  growing  interest  of  North  Americans  in  the 
republics  to  the  south,  but  more  especially  the  widening  influence 
which  they  will  likely  from  now  forward  exert  in  the  development 
of  the  resources  of  South  America,  the  author,  Mr.  Halsey,  con- 
ceived the  idea  of  presenting  in  book  form  the  salient  facts  in 
regard  to  railroads  in  Central  and  South  America. 

By  reason  of  his  close  study  of  the  financial  history  of  American 
railroads,  extending  over  a  period  of  years,  Mr.  Halsey  is  well 
fitted  to  undertake  the  work  which  he  has  so  ably  executed  in  the 
preparation  of  this  book.  The  information  given  here  is  presented 
in  concise  fashion,  is  readily  intelligible  and  should  be  most  inter- 
esting not  only  to  North  American  bankers  and  investors,  but  also 
to  railroad  men  and  others  concerned  in  the  affairs  of  steam  trans- 
portation  companies. 

Floyd  W.  Mundy. 


PART  I. 


SOUTH  AMERICA 


RAILWAYS  OF  SOUTH  AND  CENTRAL  AMERICA 


ARGENTINE  REPUBLIC. 


Argentine,  the  richest  nation  per  capita  in  the  world,  stands  ninth  in  rail- 
way mileage,  being  surpassed  only  by  the  United  States,  Germany,  Russia, 
France,  India,  Great  Britain,  Austria-Hungary,  and  the  Dominion  of  Canada.  If 
the  present  rapid  expansion  continues  it  will  soon  rank  much  higher.  The 
first  railway  in  operation  in  the  Republic  was  a  little  six-mile  line  from  Buenos 
Ayres  to  Flores,  which  was  chartered  in  January,  1854,  and  opened  in  1857. 
This  tiny  stretch  of  track  now  forms  part  of  the  Buenos  Ayres  Western  Ry. 
and  its  cost  was  $285,108.  Its  earnings  for  the  first  year  were  $19,185;  and 
its  expenses  $12,448.  Since  then  the  railways  of  the  country  have  expanded 
as  follows: 


Years. 

1865.. 
1870.. 
1880.. 
1890.. 
1900.. 
1905.. 
1909.. 
1912.. 


Length. 

Miles. 

154 

454 

1,560 

5,848 

10,269 

12,072 

15,815 

*20,400 


Capital  in- 
vested. 


Passengers. 

Number. 

747,684 

1,948,585 

2,751,570 

10,069,606 

18,296,422 

627,230,616  26,636,211 

898,913,000  50,830,000  31,955,000 

1,120,210,000  68,457,090  33,640,206 


$5,379,898 

18,835,703 

62,964,486 

321,102,691 

531,398,720 


Freight. 

Metric   tons 

71,571 

274,501 

772,717 

5,420,782 

12,659,831 

22,409,995 


Receipts.      Expenses. 


$563,134 

2,502,569 

6,560,417 

26,049,042 

41,401,348 


$438,961 

1,356,252 

3,072,185 

17,585,406 

23,732,754 


71,594,919  39,396,094 
103,578,000  62,272,000 
119,333,796  75,680,837 


The  above  statistics  have  been  taken  from  the  pamphlet  "Argentine  Re- 
public" issued  by  the  Pan  American  Union. 

The  four  principal  lines  in  operation   1912-13  were  the  following: 

Avge.  Miles 

operated  Gross  Per 

1912-13  Mile 

Buenos  Ayres  &  Pacific  Ry 3,404         $27,953,066  $8,212 

Buenos  Ayres  Great  Southern  Ry..      3,544  32,846,724  9,268 

Buenos  Ayres  Western  Ry 1,781  14,530,040  8,158 

.  Central  Argentine   Ry 2;994  32,446,730  10,837 

These  are  followed,  though  not  in  the  order  named,  by  the  Entre  Rios  Rys., 
Argentine  North  Eastern  Ry.,  Cordoba  Central  Lines,  the  Provincial  Rys.  of 
Santa  Fe,  etc.  The  Argentine  Ry.,  an  American  Company,  incorporated 
July,  1912,  in  the  State  of  Maine,  U.  S.  A.,  has  acquired  a  large  or  controlling 
interest  in  each  of  these  four  last  mentioned  companies.  As  the  various  rail- 
ways of  Argentine  are  described  on  the  pages  to  follow,  only  a  brief  mention  of 
them  will  be  made  here. 

9 


THE     RAILWAYS     OF     SOUTH 

The  Buenos  Ayres  Western  Ry.  is  the  oldest  line  at  present  operating  in 
the  Republic.  It  did  not  prosper  in  its  first  years  and  finally  fell  into  the 
Government's  hands  only  to  be  sold  in  1890  to  its  present  British  owners 
who  have  operated  it  with  great  success.  Its  credit  is  very  high  and  the 
holders  of  its  Ordinary  Stock  have  annually  been  receiving  dividends  of  7% 
to  7  J^2%  for  eleven  or  twelve  years. 

The  Buenos  Ayres  Great  Southern  Ry.  is  another  thoroughly  successful  rail- 
wav.  Its  great  network  of  lines,  covering  the  largest  mileage  of  any  system 
in  the  country,  serve  a  rich  and  fertile  district  throughout  the  eastern  portion 
of  the  State  of  Buenos  Ayres  and  forming  a  direct  line  from  the  city  of  Buenos 
Ayres  to  Bahia  Blanca.  From  the  latter  city,  now  a  place  of  great  commercial 
importance,  the  system  is  being  extended  into  the  less  settled  country  forming 
the  southerly  portion  of  La  Pampas  and  the  districts  of  Rio  Negro  and 
Neuquen. 

The  line  to  the  last  mentioned  territory  follows  the  Rio  Colorado  and  later 
the  Rio  Negro  to  the  town  of  Neuquen  from  where  an  extension  of  116  miles 
to  Zalapa  has  recently  been  completed.  Zalapa  is  not  far  distant  from  the 
Chilian  borders  towards  which  the  line  is  heading.  The  district  served  will 
benefit  greatly  through  the  irrigation  schemes  now  under  way,  and  the  earn- 
ings of  this  extension  are  likely  to  show  a  large  increase.  The  Buenos  Ayres 
Great  Southern  Ry.  is  an  old  line,  dating  its  existence  back  to  1862  when  it 
took  over  the  uncompleted  Buenos  Ayres  State  Line.  It  has  paid  dividends 
for  a  number  of  years;  the  rate  paid  on  the  Ordinary  Stock  having  been  7% 
since  the  late  nineties. 

Perhaps  the  widest  known  line  in  South  America  is  the  Buenos  Ayres  & 
Pacific  Ry.  accounted  for  by  the  important  part  it  has  played  in  opening  to 
the  world  the  great  Transandine  Route  from  Buenos  Ayres,  through  the  heart 
of  the  mountains  to  Valparaiso,  Chili.  From  a  small  beginning  in  1882  it  has 
expanded  its  mileage  and  increased  its  earnings  with  considerable  rapidity  and 
at  this  writing  owns  or  works  under  leases,  agreements,  etc.,  over  3,500  miles 
of  broad  gauge  railway,  as  against  about  600  miles  operated  a  dozen  years  ago. 

The  Central  Argentine  Ry.  runs  through  the  rich  country  between  Buenos 
Ayres,  Rosario,  Cordoba,  etc.  Its  total  Gross  Earnings  and  its  receipts  per 
mile  of  road  are  the  largest  in  the  Republic. 

Argentine  is  second  in  size  among  the  Republics  of  South  America.  Its 
area,  1,139,979  square  miles,  equals  one-third  the  area  of  the  United  States, 
and  it  has  a  population  estimated  at  7,100,000.  It  now  stands  seventh  among 
the  nations  of  the  world  in  the  production  of  wheat,  fourth  in  the  area  of 
wheat  sown,  and  has  for  several  years  ranked  either  first  or  second  in  the 
amount  exported  to  other  countries.  The  wheat  production  for  1912  totalled 
198,000,000  bushels,  of  which  about  100,000,000  bushels  were  exported.  The 
area  under  cultivation,  estimated  at  17,100,000  acres,  was  said  to  have  been 
not  more  than  one-fifth  of  the  possible  area  available  for  the  growing  of  this 
product.  The  farms  of  the  nation  further  produced  in  1912,  296,000,000 
bushels  of  maize,  and  vast  quantities  of  linseed,  oats,  etc.  The  raising  of 
domestic  animals  is  another  great  industry.  A  recent  census  shows  that 
within  the  Republic  there  are  over  29,000,000  head  of  cattle,  73,000,000  sheep, 
7,500,000  horses,  800,000  mules  and  asses,  4,000,000  goats,  etc.,  valued  at 
about  $700,000,000. 

On  June  30,  1913,  the  Banks  of  the  Capital  had  Cash  on  Hand,  including 
the  balances  corresponding  to  the  Argentine  Nation,  to  the  amount  of  $72,- 

10 


AND     CENTRAL     AMERICA 

093,387  gold  and  $491,553,755  paper.  The  balance  of  Gold  in  the  Conversion 
Office  at  the  same  time  amounted  to  $266,534,330  as  against  $213,866,098 
on  June  30,  1912. 

The  imports  of  the  Republic  for  the  year  ending  June  30,  1913,  amounted 
to  £81,480,941  (about  $400,000,000)  and  the  exports  to  £104,912,799  (about 
$500,000,000).  The  Immigration  for  the  period  was  349,364  (including 
146,507  Spaniards  and  101,300  Italians)  and  the  Emigration  143,618,  leaving 
a  balance  of  205,746  in  favor  of  the  Country. 


Argentine  Ry. 

The  Argentine  Ry.  was  incorporated  in  Maine  on  July  12,  1912,  to  acquire 
control  of  various  railroad  properties  in  Argentine  and  to  operate  and  con- 
struct, both  through  subsidiary  companies  and  directly,  extensions  in  order  to 
establish  and  complete  a  connected  railway  system. 

The  Charter,  which  is  a  very  broad  one,  gives  the  purposes  of  said  corpora- 
tion which  in  brief  may  be  stated  as  follows: 

To  construct,  purchase,  lease,  and  operate  railroads,  street  railways,  and 
tramways,  within  the  Republic  of  Argentine,  and  within  the  Republics  or 
countries  bordering  thereon;  also  to  operate  telegraph  and  telephone  lines; 
to  construct  and  operate  gasworks,  electric  light,  heat  and  power  plants; 
to  acquire  land  and  to  deal  in  landed  property;  to  promote  colonization;  to 
prospect,  acquire,  operate,  dispose  of  oil  lands  and  oil  wells,  and  to  store  re- 
fined oil,  to  treat  oil,  and  establish  pipe  lines;  to  improve  harbors  and  ports; 
to  erect  docks,  etc.,  to  mine  ores  of  all  kinds  and  invest  in  securities  of  other 
companies,  and  to  do  an  engineering  and  contracting  business. 

A  letter  from  the  company  states: 

"The  provinces  of  Entre  Rios  and  Corrientes  up  to  the  present  time  have 
been  partially  served  by  both  the  Entre  Rios  Ry.  and  Argentine  North  Eastern 
Ry.,  and  if  the  existing  lines  and  their  services  are  judiciously  improved  and 
new  lines  constructed  these  provinces  can  be  made  most  prosperous.  Up  to  a 
few  years  ago  the  Entre  Rios  Ry.  system  was  only  a  feeder  to  river  navigation. 
An  extension  was  then  made  to  the  part  of  Ibicuy  and  a  through  service 
initiated  in  connection  with  Buenos  Ayres,  but  the  Entre  Rios  Co's  own  lines 
were  not  improved  and  nothing  was  done  to  shorten  routes  and  quicken 
service  in  order  that  full  advantage  could  be  taken  of  this  connection;  never- 
theless from  the  time  this  connection  was  made  two  or  three  years  ago  the 
traffic  has  greatly  increased  and  there  is  no  doubt  that  when  the  railway  has 
been  improved  and  brought  up  to  date  under  modern  American  railroad 
practices,  the  expansion  will  be  much  greater. 

"The  Argentine  North  Eastern  Ry.  (which  see)  is  a  natural  extension  of  the 
Entre  Rios.  These  companies  up  to  the  present  have  been  worked  inde- 
pendently, and  though  efforts  have  been  made  from  time  to  time  to  har- 
monize their  interests,  no  practical  measures  have  been  introduced,  but  on 
the  contrary  much  of  their  energies  and  large  amounts  of  money  have  been 
spent  in  competition. 

"The  Santa  Fe  Ry.  runs  from  Rosario  parallel  to  the  Parana  River  and  extend- 

11 


THE     RAILWAYS     OF     SOUTH 

ing  towards  Ascunsion.     It  earns  at  the  present  time  about  10%  on  its  stock 
and  controls  a  large  volume  of  traffic  which  is  capable  of  large  growth. 

"The  Central  Cordoba  Lines  are  being  taken  over  under  a  working  agree- 
ment and  by  this  connection  the  Argentine  Railway  Company  finds  an  entrance 
into  Buenos  Ayres  city  and  port.  The  Cordoba  Central  has  very  fine  terminals 
in  Buenos  Ayres  with  access  to  the  docks.  Terminal  space  in  Buenos  Ayres  at 
the  present  time  is  as  expensive  as  any  place  in  the  world  and  it  would  cost 
at  least  $15,000,000  to  get  equal  terminal  facilities  as  those  now  acquired  with 
the  Cordoba  Central. 

"The  Argentine  Ry.  has  also  secured  a  concession  called  the  Fary  Concession 
which  is  for  a  line  running  west  of  the  Santa  Fe  Ry.,  but  at  a  sufficient  distance 
to  create  traffic  of  its  own,  without  interfering  with  that  of  the  Santa  Fe. 
This  line,  when  constructed,  will  open  up  the  Argentine  Chaco  and  Paraguayan 
Chaco,  the  undeveloped  lands  of  which  are  both  at  the  present  time  command- 
ing high  prices.  These  lands  are  most  fertile  and  can  be  subjected  to  the  highest 
cultivation. 

"The  Argentine  Ry.  has  secured  a  portion  of  the  Rosario  and  Puerto  Bel- 
grano  Ry.  with  an  option  for  six  years  to  purchase  same.  The  Rosario  and 
Puerto  Belgrano  Ry.  runs  from  Rosario  down  to  Puerto  Belgrano  on  the 
Atlantic  Ocean,  cutting  transversely  practically  all  of  the  railroads  in  the 
Argentine  Republic  and  having  junctions  with  them. 

"The  acquisition  of  lands  in  the  zones  which  will  be  developed  by  the  rail- 
ways is  a  feature  which  has  not  been  overlooked.  Large  tracts  have  been  pur- 
chased at  undeveloped  prices  and  are  a  sure  source  of  profit.  Not  only  will 
the  sale  or  working  of  the  lands  yield  a  large  profit,  but  their  produce  will 
bring  a  large  volume  of  traffic  to  the  railways. 

"The  lines  also  penetrate  zones  covered  with  forests  of  quebracho,  of  which 
large  areas  have  been  purchased.  This  industry  is  one  of  the  most  profitable 
and  will  yield  a  large  traffic  to  the  railways  the  year  round." 

The  amount  of  authorized  capital  stock  is  $30,000,000  Common  and 
$15,000,000  Preferred. 

No  statement  of  earnings  is  given  owing  to  the  recent  organization  of  the 
company.  For  the  same  reason  the  appended  Balance  Sheet  can  only  be  given 
in  skeleton  form. 

Statement  of  the  Argentine   Railway,   August  31,    1912   (latest  obtainable): 

A  ssp  t"  s 

Cash $1,584,053.  31 

Shares    and    controlling    interest    in    other    Com- 
panies, and  contracts  acquired 45,476,492.61 

$47,060,545.92 
Liabilities 

Common  Stock $30,000,000.  00 

Preferred  Stock. 15,000,000.  00 

Creditors  and  Bills  Payable 2,060,545 .  92 

$47,060,545.92 
12 


AND     CENTRAL     AMERICA 

The  interests  controlling  the  Argentine  Ry.  are  identified  with  those  in  control 
of  the  Brazil  Ry.,  Bolivia  Land  and  Colonization  Co.,  Uruguay  Ry.,  Antofa- 
gasta  (Chili)  and  Bolivia  Ry.,  etc. 

In  January,  1913,  the  Argentine  Ry.  sold  $7,500,000  (£1,500,000)  two-year 
Notes  secured  by  £108,423  First  Preference  Stock,  £236,929  Second  Preference 
Stock  and  £1,166,812  Ordinary  Stock  of  the  Entre  Rios  Rys.;  £483,400 
Ordinary  Stock  of  the  Argentine  North  Eastern  Ry.,  and  about  $3,059,600  of  a 
total  of  about  $10,800,000  stock  of  the  Santa  Fe  Ry. 

Gross  Earnings  of  the  Argentine  Ry.  lines  directly  operated  (1916  miles) 
for  the  period  July  1,  1913  to  February  21,  1914,  were  £1,815,860  as  against 
£1,599,085  for  the  same  period  in  1912-13.  Gross  Earnings  for  a  similar, 
period  for  the  lines  in  which  the  company  held  an  important  interest  (1836 
miles)  were  £1,022,430  as  against  £1,002,723  in   1912-13. 


Argentine  Great  Western  Ry. 

This  railway  operates  about  950  miles  of  broad  gauge  railway  extending 
trom  Villa  Mercedes,  westward  to  San  Luis  and  Mendoza,  thence  northward 
to  San  Juan,  with  branches.  A  portion  of  the  line  forms  the  connecting  line 
between  the  Buenos  Ayres  &  Pacific  Ry.  (which  see)  and  the  Argentine 
Transandine  Ry.,  thus  it  is  a  part  of  the  Trans-continental  line  between 
Buenos  Ayres  and  Chili. 

In  1907,  the  Buenos  Ayres  &  Pacific  Ry.  took  over  the  operation  of  this 
line  working  the  same  under  lease.  Under  the  agreement  the  Great  Western 
5%  Cumulative  Preferred  Stock  shares  pro  rata  with  the  5%  First  Preference 
Stock  of  the  B.  A.  &  P.  Ry.  in  all  dividends  up  to  5%,  and  will  share  pro  rata 
with  the  Ordinary  Stock  of  the  B.  A.  &  P.  Ry.  in  dividends  between  5%  and 
6%  on  that  class  of  stock.  When  the  dividend  on  the  B.  A.  &  P.  Ry.  Ordinary 
Stock  is  in  excess  of  7%,  the  rate  on  "Great  Western"  Preferred  Stock  will  be 
6H%  and  when  the  rate  paid  on  the  B.  A.  &  P.  Ordinary  Stock  exceeds  10%, 
it  will  be  increased  to  7%. 

The  Ordinary  Stock  of  the  Argentine  Great  Western  Ry.  shares  equally 
with  the  B.  A.  &  P.  Ry.  Second  Preference  Stock  up  to  5%  and  is  entitled  to 
additional  dividends  under  similar  conditions  as  the  Preference   Stock  above. 

Both  the  Preferred  and  the  Ordinary  Stocks  of  the  "Great  Western"  re- 
ceived 5%  in  1912-13,  and  also  in  1911-12,  1910-11,  1909-10  and  1908-09. 
For  some  years  prior  to  1908-09  the  rate  on  the  stocks  was  6%  per  annum. 

The  interest  on  all  Debenture  Stocks  are  guaranteed  by  the  B.  A.  &  P.  Ry. 

The  Debenture  Stock  and  Capital  Stock  outstanding  June  30,  1913: 

Rate  Amount  Issued 

First  Debenture  Stock 4%        £1,700,000       $8,500,000 

Second  Debenture  Stock 4%  1,700,000         8,500,000 

Debenture  Stock 5%  3,600,000       18,000,000 

Preferred  Stock  (Cumulative) 5%,  etc.  2,125,000        10,625,000 

Ordinary  Stock 2,125,000       10,625,000 

Total  Outstanding £l  1,250,000     $56,250,000 

13 


THE     RAILWAYS    OF     SOUTH 

There  is  authorized  in  addition  to  the  above  5%  Debenture  Stock  at  £4,000 
($20,000)  per  mile  of  road  built  and  £1,000,000  ($5,000,000)  Shares  of  £10 
each;    convertible  into  equal  amounts  of  Preferred  and  Ordinary  Stocks. 

The  Gross  Earnings  of  the  "Gt. Western"  for  four  years  have  been  as  follows: 

1909-10 $5,015,395  £1,003,079 

1910-11 5,370,460  1,074,092 

1911-12 5,927,285  1,185,457 

1912-13 6,420,250  1,284,050 

The  Amounts  received  from  the  B.  A.  &  P.  Ry.  in  1912-13  were  $1,580,000 
(£316,000)  for  interest  on  Debenture  Stock  and  $1,062,500  (£212,500)  for 
dividends  on  the  Preferred  and  Ordinary  Stocks. 

See  Buenos  Ayres  &  Pacific  Ry. 


Argentine  North  Eastern  Ry. 

Avg.  Miles  Avg.  Miles 

Year                       Oper.  Gross  Year                      Oper.  Gross 

1909-10                   560  $1,227,668  I        1911-12                  665  $1,596,592 

1910-11                   614  1,465,117  |        1912-13                   665  1,835,123 

Stock  Outstanding  Bonds  Outstanding 

June  30,  1913  June  30,  1913 

Common $13,842,500  Debentures  (5  %) $15,961,143 

Styled  "A,"  "B"  and  "C"  Debentures  and  Debenture  Stock,  £1,200,000,  £992,229  and 
£1,000,000  respectively  of  these  Debentures  were  outstanding  June  30,  1913,  including 
£203,886  "A"  Debentures  and  Debenture  Stock  issued  during  1912-13.  The  "C"  Deben- 
tures and  Debenture  Stock  are  entitled  to  interest  at  5  %  per  annum  if  earned. 

Capitalization 

Total Per  Mile 

Stock £2,768,500  $13,842,500  $20,816 

Debentures 3,192,229  15,961,143  24,002 

Total 5,960,729  29,803,643  44,818 

Fixed  charges  below  include  $250,000  interest  on  $5,000,000  "C"  Debentures  and  "C" 
Debenture  Stock,  payable  if  earned. 

Income  Account  Year  Ending  June  30,  1913 

Average  miles  operated,  665. 

Total Per  Mile 

Operating  Revenues £367,025            $1,835,123  $2,760 

Operating  Expenses 222,226              1,111,130  1,671 

Net  Operating  Revenues 144,799                  723,993  1,089 

Other  Income 28,352                  141,764  213 

Total  Net  Income 173,151                  865,757  1,302 

Fixed  Charges 154,921                  774,606  1,165 

♦Surplus 18,230                    91,151  137 

Operating  Expenses 

Maintenance  of  Way £49,302  $246,513  $371 

Maintenance  of  Equipment 28,346  141,730  213 

Traffic  and  Transportation  Expenses 114,068  570,338  858 

General  Expenses 30,510  125,549  229 

Ratio  of  Operating  Expenses  to  Operating  Revenues,  60.5  per  cent. 
♦This  Surplus  before  deducting  $100,000  appropriated  to  Renewal  Fund. 
Other  Income  above  includes  $100,540  transferred  from  Subvention  Account. 

Appropriation  of  Gross  Income 

1912-13  1911-12 

For  Maintenance  Expenses 19.7  c"s  20.2  % 

For  Traffic,  Transportation  and  General  Expenses 36.6  %  39.4  % 

For  Fixed  Charges 39.1  %  40.6  % 

For  Surplus 4.6  %  Deficit 

100.0  <vc 
14 


AND     CENTRAL     AMERICA 

NOTES 

This  company's  lines  extends  from  Concordia  in  the  province  of  Entre  Rois 
(where  connection  is  made  with  Entre  Rios  Rys.)  to  Corrientes,  capital  of  the 
province  of  that  name,  and  to  Posadas.  At  the  latter  point  a  car  ferry  service 
has  been  established  affording  a  connection  with  the  Paraguay  Central  Ry. 
operating  in  the  Republic  of  Paraguay.  In  October,  1913,  through  passenger 
train  service  via  this  railway,  the  Entre  Rios  Ry.  and  the  Paraguay  Central  Ry. 
was  placed  in  operation  between  Buenos  Ayres  and  Asuncion,  the  capital  of 
Paraguay.  An  extension  southward  from  Concordia  to  Conception  del 
Uruguay  (about  84  miles)  was  practically  completed  June  30,  1913,  and  a 
large  additional  mileage  is  under  construction  or  is  proejcted,  including  a  line 
to  Puerto  Aguirre  near  the  Brazilian  frontier. 

No  dividends  are  paid  on  the  ordinary  stock  of  this  company. 

In  December,  1911,  £1,000,000  5%  "C"  Defenture  stock  was  authorized 
and  was  sold  at  85,  the  proceeds  to  be  used  to  complete  extensions  then  under 
construction.     In  1912-13,  £203,886  "A"  Debenture  stock  was  sold. 

In  1912-13  The  Argentine  North  Eastern  Ry.  received  from  the  Government 
4%  bonds  as  follows:  £21,823,  balance  due  in  respect  of  Posados  Extension, 
and  £46,100  on  account  of  subvention  Southern  Extension.  £20,108  from 
Subvention  Account  was  credited  to  the  Income  Account  of  the  company  in 
1912-13,  this  being  the  equivalent  of  interest  on  part  of  the  capital  expended 
on  the  Uruguay  extensions.  The  total  expenditures  for  1912-13  for  construc- 
tion of  new  lines,  for  betterments,  equipments,  etc.,  amounted  to  $2,487,580 
(£497,516),  as  against  £327,497  so  expended  in  1911-12  and  £315,157  so 
expended  in  1910-11.  On  June  30,  1913,  £146,866  Argentine  Government 
4%  bonds  were  either  owned  by  or  due  the  railway.  £67,400  of  these  bonds 
were  sold  by  the  railway  in  1912-13  for  £53,659. 

The  Argentine  Ry.  has  an  interest  in  the  stock  of  this  company. 


Argentine  Transandine  Ry. 

The  Argentine  Transandine  Ry.  forms  part  of  the  recently  completed  Trans- 
Continental  line  (the  only  one  in  South  America)  comprising  the  Buenos 
Ayres  &  Pacific  Ry.,  the  Argentine  Great  Western  Ry.,  the  Argentine  Trans- 
andine Ry.,  Chilian  Transandine  Ry.  and  Chilian  Rys.  The  Argentine 
Transandine  Ry.  extends  from  the  City  of  Mendoga,  which  is  the  terminal 
of  the  Argentine  Great  Western  Ry.,  via  Puenta  del  Inca,  etc.,  to  Las  Cuevas 
where  it  joins  the  Chilian  Transandine  Ry.  Here  a  great  tunnel  (completed 
in  1910)  has  been  cut  through  the  Andes  and  the  passenger  making  a  trip 
across  the  continent  no  longer  finds  it  necessary  to  take  the  ride  over  the 
divide  formerly  separating  the  railways  of  the  two  republics.  The  railway  is 
about  112  miles  in  length  and  is  of  metre  gauge. 

15 


THE     RAILWAYS     OF     SOUTH 

The  capitalization  June  30,  1913,  was  approximately  as  follows: 

4%  "A"  Debenture  Stock  (guaranteed  principal  and 
interest  by  the  B.  A.  &  P.  Ry.  and  Argentine  Great 
Western  Ry) $1,550,830       £310,166 

4%  (formerly  6%)  "B"  Debenture  Stock,  interest 
dependable  upon  income.  Redeemable  at  par. 
(Interest  has  been  paid  regularly.) 1,550,830  310,166 

7%  Preferred  Stock  (cumulative  since  1906).  Shares 
pro  rata  with  Deferred  in  all  dividends  above  7% 
per  annum.  3%  each  was  paid  in  1910-11  and 
1912-13  on  account  of  arrears  of  dividends.  £230, 
000  back  dividends  were  due  June  30,  1913 2,500,000  500,000 

7%  Deferred  Stock 1,750,000  350,000 


$7,351,660    £1,470,332 


The  Income  Account  for  1912-13  follows: 


Received  from  B.  A.  &  P.  Ry.  under  agreement $161,565     £32,313 

Interest  on  Recession  Bonds 22,525  4,505 


Total  Receipts $183,090     £36,818 

Expenses   including  £24,814  interest  on   "A"   and   "B" 

Debentures,  £4,093  Directors'  Fees,  etc $144,535     £28,907 


Net  Profit $39,555        £7,91 1 

Add  amount  brought  forward 120,730        24,146 


Total $160,285     £32,057 

Dividends  paid  on  preferred  stock 75,000         15,000 

Carried  forward $85,285     £17,057 

The  Rentals  received  for  191 1-12  were  $207,905  (£41,581);  $28,075  (£5,615) 
interest  on  Recession  bonds  was  also  received.  The  total  profits  for  the  year 
were  $94,470  (£18,894),  not  including  $29,600  (£5,920)  brought  forward  from 
1910-11. 


Argentine  Union  Ry. 

NOTES. 

This  company  was  incorporated  February  25,  1910,  to  build  a  railway 
from  the  Port  of  St.  Nicholas  to  Arenales.  The  authorized  capital  is  £200,000 
(par  £l)  practically  all  of  which  has  been  subscribed  for.  Approximately 
£304,160  ($1,520,800)  of  an  authorized  issue  of  £1,100,000  ($5,500,000). 
First  Debenture  bonds  (£20  denomination).  Construction  work  has  been 
going  on  for  some  time  and  the  completion  of  the  line  is  expected  before  the 
end  of  1914. 

16 


AND     CENTRAL     AMERICA 
Bahia  Blanca  &  North  Western  Ry. 

This  railway  is  operated  by  the  Buenos  Ayres  &  Pacific  Ry.  under  an  agree- 
ment whereby  the  latter  guarantees  the  principal  and  interest  on  the  De- 
benture Capital  and  dividends  on  the  Stocks.  The  dividends  guaranteed 
on  the  Ordinary  Stock  were  at  the  rate  of  3%  from  1904  (July)  to  1908;  3j^%, 
1909  to   1912;  4%,   1913  (July)  to  1916;  W2%  thereafter. 

£1,350,000  ($6,750,000)  of  this  Guaranteed  Stock  was  outstanding  June 
30,  1913,  together  with  £1,250,000  ($6,250,000)  and  £2,000,000  ($10,000,000) 
4H%  and  5%  Guaranteed  Stock  since  issued.  The  Bahia  Blanca  &  North 
Western  Ry.  had  also  outstanding  at  that  time  £2,450,000  ($12,250,000)  4% 
First  Debenture  Stock  and  £3,000,000  ($15,000,000)  A]/2%  Second  Debenture 
Stock.  £2,000,000  additional  5%  Debentures  are  authorized.  After  March 
1,  1916,  the  dividends  on  the  5%  Guaranteed  Stock  are  to  be  reduced  to  4J4%. 

The  amount  of  Rentals  received  by  this  company  from  the  B.  A.  &  P.  Ry. 
in  1912-13  was  £436,500  ($2,182,500)  for  interest  and  dividends  and  £6,320 
($31,602)  for  Management  Expenses  in  London  and  Buenos  Ayres. 

The  traffic  of  the  railway  for  the  last  five  years  (as  shown  in  the  annual 
reports)  was  as  follows: 

Miles 

Operated  Gross  Receipts 

1908-9 665  $3,105,370         £621.074 

1909-10 701  2,941,275            588,255 

1910-11 722  2,604,115            520,823 

1911-12 *782  3,460,625            692,125 

1912-13 t824  4,180,180            836,036 


* 


Average  mileage  operated  746;  f  Average  mileage  operated  817. 

In  19?.2-13,  1,181,093  passengers  were  carried  and  the  receipts  from  that 
source  were  £98,632.  964,456  tons  of  wheat,  217,976  tons  of  barley,  oats, 
etc.,  47,025  tons  of  wine,  31,233  tons  of  maize,  790,359  sheep  and  136,193 
cattle  were  also  handled  together  with  merchandise  to  the  amount  of  94,990 
tons,    etc. 

This  railway  extends  from  the  port  of  Bahia  Blanca  northeasterly  to  Toay 
and  to  Nuenco  Renanco  at  which  latter  point  it  joins  the  Buenos  Ayres  & 
Pacific  Ry.,  together  with  various  branch  lines.  The  growing  importance 
of  the  port  of  Bahia  Blanca  is  shown  by  the  fact  that  during  the  period  from 
January  1  to  September  25,  1913,  the  exports  of  wheat  and  oats  were  as  follows: 

Wheat  Oats 

(tons)  (tons) 

Bahia  Blanca 876,782  401,830 

Buenos  Avres 436,288  233,756 

La  Plata. 317,484  167,715 

Rosario 741,497  10,124 

Santa  Fe 262,595  84 

Other  Ports 40,062  215 

753,667  tons  of  cereal  were  shipped  at  this  company's  port  at  Bahia 
(Puerto  Galvin)  in  1912-13. 

The  company  has  been  engaged  in  building  a  line  southward  to  Patagonas 

17 


THE     RAILWAYS    OF     SOUTH 

on  the  Rio  Negro  River.  The  line  has  been  completed  as  far  as  Yallarino 
on  the  Colorado  River  (633^  miles).  The  total  length  of  the  line  will  be 
about  167  miles.  $1,244,875  (£248,975)  were  expended  on  this  extension  during 
1912-13. 


Buenos  Ayres  &  Pacific  Ry. 


Avg.  Miles  Avg.  Miles 

Year            Oper.           Gross             Surplus  Year  Oper.             Gross               Surplus 

1910-11       3,114     $24,104,207  $3,558,672  1912-13       *3,404       $27,953,066     $3,579,503 

1911-12       3,240       24,883,255  t2,145,315 

*Total  June  30,  1913,  3,417  miles;    1,407  miles  owned,  2,010  leased. 
tA  strike  in  1911-12  caused  a  loss  in  Surplus  of  over  $900,000. 

Slock   Outstanding  *Bonds  Outstanding 

June  30,  1913  June  30,  1913 

Ordinary $50,000,000  Deb.  Stock  (4  %) $14,625,000 

tPreference  1st  (5 %) 6,000,000  JDeb.  Stock  (4  !^  %) 50,088,365 

Preference  2d  (5  %) 5,000,000  Deb.  Stock  (5%) 10,000,000 

♦These  are  the  Stocks  and  Debenture  Stocks  of  the  parent  company  and  do  not  include 
Securities  of  leased  and  controlled  Lines.  tCumulative.  t$l,536,655  (£307,327)  paid 
off  June  30,  1913;  includes  $10,375,000  (£2,075,000)  Second  Debenture  Stock  and  $39,- 
713,365  (£7,942,673)   Consolidated  Debenture  Stock. 

Capitalization 

Total Per  Mile 

Stock £12,200,000          $61,000,000  $17,920 

Debenture  Stock 15,250,000           74,713,365  21,949 

Total 27,450,000          135,713,365  39,869 

Fixed  Charges  below  include  $4,657,421  for  Rentals  payable  under  agreements,  guaran- 
teed dividends,  etc.  (see  Notes),  $46,334  Depreciation  of  Steamers  and  $53,276  Income  Tax. 

Income  Account  Year  Ending   June  30,  1913 

Average  miles  operated,  3,404. 

Total Per  Mile 

Gross  Receipts £5,590,613  $27,953,066  $8,212 

Operating  Expenses 3,459,921  17,299,608  5,082 

Net  Receipts 2,130,692  10,653,458  3,130 

Other  Income 183,110  915,550  269 

Total  Net  Income 2,313,802  11,569,008  3,399 

Fixed  Charges 1,597,901  7,989,505  2,347 

Surplus 715,901  3,579,503  1,052 

Operating  Expenses 

Total Per  Mile 

Maintenance  of  Way £447,929           $2,239,647  $658 

Maintenance  of  Equipment 614,617              3,073,084  903 

Traffic  and  Transportation  Expenses 1,953,865             9,769,328  2,870 

General  Expenses 443,510             2,217,549  651 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  61.9  per  cent. 

Appropriation  of  Gross  Income 

1912-13  1911-12 

For  Maintenance  Expenses 18.4  %  19.0  % 

For  Traffic,  Transportation  and  General  Expenses 41.5%  42.7% 

For  Fixed  Charges 27.7  %  29.9  % 

For  Surplus 12.4  %  8.4  % 

100.0%  100.0% 

1912-13  1911-12     1910-11 

Miles,  second  and  additional  main  track 294  267  246 

Miles,  yards  and  sidings 673  649  568 

18 


AND     CENTRAL    AMERICA 

NOTES. 

The  First  Preference  Stock  and  the  Second  Preference  Stock  are  entitled 
to  receive  dividends  of  5%  each  in  order  of  priority.  The  dividend  on  the 
First  Preference  stock  is  cumulative.  Full  dividends  were  paid  on  these  two 
classes  of  stock  in  1912-13;  also  3%  was  paid  on  the  ordinary  stock,  as  against 
2%  paid  in  1911-12,  3^%  in  1910-11,  3%  in  1909-10,  5%  in  1908-9,  and  7% 
in  1907-8. 

There  was  a  strike  of  drivers  and  firemen  during  the  year  1911-12  which 
caused  a  loss  in  Net  Revenues  estimated  at  from  $900,000  to  $1,000,000. 

The  4%  First  Debenture  Stock  (£2,925,000  authorized  and  outstanding) 
and  the  5%  Second  Debenture  Stock  (£2,075,000  authorized  and  outstanding) 
are  a  first  and  second  charge  on  the  property  of  this  company.  The  latter  class 
of  stock  is  redeemable  at  105  at  the  company's  option.  £307,327  5%  Deben- 
ture Stock  (issued  prior  to  February,  1907),  £7,942,673  4j/£%  Consolidated 
Debenture  Stock  and  £2,000,000  5%  Debenture  Stock  (issued  1912  and  1913) 
were  also  outstanding  on  June  30,  1913.  being  charges  on  the  property  in  the 
order  of  priority.  The  £307,327  5%  Debenture  Stock  was  called  for  payment 
July  1,  1913.  This  was  a  part  of  an  issue  of  £1,250,000,  the  balance  of  which 
(£942,673)  was  exchanged  for  an  equal  amount  of  4j^%  Consolidated  Deben- 
ture   Stock. 

The  company's  balance  sheet  as  of  June  30,  1913,  showed  a  considerable 
balance  of  Working  Assets  over  Working  Liabilities.  Among  the  Working 
Assets  was  cash  to  the  amount  of  £671,794,  £266,309  (net)  Bills  Receivable 
and  £1,857,193  stores.  There  were  also  Reserve  Funds  to  the  amount  of 
£671,264. 

This  company  leases  the  Argentine  Great  Western  Ry.  (which  see)  and  paid 
as  rental  in  1912-13,  £316,000  for  interest  on  the  latter's  £7,000,000  Deben- 
ture Stocks,  and  £212,500  as  dividends  on  the  £2,125,000  Preferred  Stock  and 
£2,125,000  Ordinary  Stock  of  the  latter.  The  Bahia  Blanca  &  Northwestern 
Ry.  (see  that  company)  is  also  operated  under  agreement.  £436,500  was 
paid  as  rental  for  this  line  in  1912-13,  which  amount  was  applied  as  dividends 
on  the  latter's  stock.  The  sums  of  £40,721  and  £32,013  were  paid  in  1912-13 
to  the  Villa  Maria  &  Rufino  Ry.  and  to  the  Argentine  Transandine  Ry.  as 
rentals,  the  former  amount  as  a  dividend  and  the  latter  as  a  proportion  of 
receipts.     These  latter  companies  are  described  under  separate  heads. 

The  Bahia  Blanca  &  North  Western  Ry.  which,  as  stated  above,  is  operated 
by  the  Buenos  Ayres  &  Pacific  Ry.  under  a  working  agreement,  earned  in 
1912-13  gross,  $4,180,180  (£836,036).  The  company  operated  June  30,  1913, 
824  miles  of  road,  and  had  outstanding  on  that  date  Debenture  Stock  and 
Guaranteed  Stock  to  the  amount  of  £10,050,000. 

The  lines  of  this  company  and  of  the  companies  leased  by  it,  extend  from 
Buenos  Ayres  on  the  east  to  the  Andes  Mountains.  Here  connection  is  made 
with  the  Chilian  Transandine  Ry.  which  in  turn  connects  with  the  Chilian 
(Government)  Rys.  these  lines  forming  a  Transcontinental  system  from  the 
Atlantic  Ocean  at  Buenos  Ayres  to  the  Pacific  Ocean  at  Valparaiso.  A  large 
number  of  extensions  and  branches  have  been  constructed  by  the  B.  A.  &  P. 
Ry.  during  recent  years. 

Wheat  and  other  Cereals,  Wine  and  Grapes  and  Live  Stock  constitute  the 
principal  tonnage  hauled  by  this  railway  system.  In  1912-13  a  total  of  11,- 
601,148  passengers  were  carried  (average  31,784  per  day — 128  per  train). 

19 


THE     RAILWAYS    OF    SOUTH 

The  tonnage  and  earnings  from  the  handling  of  cereals  were  as  follows: 

1912-13  1911-12 

Tons               Receipts  Tons               Receipts 

Wheat 1,474,631          £579,364  1,290,547          £498,742 

Maize 545,048             237,219  154,750               71,355 

Barley,  Oats,  etc 263,803               48,580  230,133               45,055 

Linseed 100,198              70,369  75,120              52,751 

Total 2,383,680         £935,532  1,750,550         £667,883 

Vine  Products  contributed  the  following: 

1912-13  1911-12 

Tons               Receipts  Tons               Receipts 

Wine 460,114          £997.332  441,585          £949,521 

Grapes 59,549               87,196  43,854               62,497 

Raisins ,  ..              1,366                 3,917  1,464                 3,444 

Total 521,029      £1,088,445  486,903      £1,015,462 

The  total  of  £338,837  was  received  in  1912-13  from  the  handling  of  2,655,205 
head  of  live  stock  and  £747,031  from  the  traffic  in  General  Goods. 


Buenos  Ayres  Central  Ry. 

Year                 Average  Miles  Operated  Gross                                  Surplus 

1912-13                                   175  $1,300,645                             $274,473 

Stock  Outstanding  Bonds  Outstanding 

June  30,  1913  June  30,  1913 

♦Common $8,469,300  fFixed  Interest $6,500,000 

*$20,165,000  Argentine  Currency. 

t£700,000  4  i-2%  First  Mortgage  Debentures  and  £600,000  Second  Mortgage  Debentures. 

Capitalization 

Total  Per  Mile 

Stock $8,469,300  $48,396 

Bonds 6,500,000  37,143 

Total 14,969,300  85,539 

Income  Account  Year  Ending  June  30,  1913 

Average  miles  operated,  175.                                                 Total Per  Mile 

Gross  Receipts £260,129         $1,300,645  $7,432 

Operating  Expenses 146,736               733,681  4,192 

Net  Receipts 113,393               566,964  3,240 

Total  Net  Income 113,393              566,964  3,240 

Fixed  Charges 58,498               292,491  1,672 

♦Surplus 54,895               274,473  1,568 


Operating  Expenses 


-Total Per  Mile 


Maintenance  of  Way £24,368            $121,842  $696 

Maintenance  of  Equipment 10,173                 50,864  291 

Traffic,  Transportation  and  General  Expenses 112,195               560,975  3,205 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  56.4  per  cent. 

*This  Surplus  before  deducting  $14,522  appropriated  to  Reserve. 

Appropriation  of  Gross  Income 

1912-13 

For  Maintenance  Expenses 13.3% 

For  Traffic,  Transportation  and  General  Expenses 43 . 1  % 

For  Fixed  Charges 22 . 5  % 

For  Surplus 21.1% 

100.0% 
20 


AND     CENTRAL     AMERICA 

NOTES 

This  company,  the  stock  of  which  is  almost  wholly  owned  in  Argentine, 
operates  about  175  miles  of  road.  The  main  line  extends  from  Buenos  Ayres 
in  a  westerly  direction  to  Rojas  and  there  is  a  branch  to  Zarate  on  the  Panama 
River.  From  Zarate  a  car  ferry  connects  with  the  Entre  Rios  Rys.  and 
through  trains  are  operated  via  these  lines,  the  Argentine  Northeastern  Ry. 
and  the  Paraguay  Central  Ry.,  to  Asuncion,  the  capital  of  Paraguay.  A  part 
of  the  line  is  double  tracked. 

3%  was  paid  on  the  stock  in  1912-13,  against  \lA%  each  in  1911-12  and 
1910-11. 

The  4^%  First  Mortgage  Debentures  are  authorized  to  the  amount  of 
£1,000,000,  of  which  a  total  of  £700,000  had  been  issued  to  June  30,  1913. 
They  are  redeemable  at  par  in  1950,  or  after  January,  1917,  at  option  of  the 
company,  but  only  upon  six  months  notice. 

The  5%  Second  Mortgage  Debentures  have  been  issued  to  the  entire 
authorized  amount,  £600,000.  The  Debentures  may  be  drawn  at  par  by 
lot  or  may  be  purchased  through  a  Sinking  Fund  at  par  or  less. 

A  part  of  the  line  will  be  used  by  the  Lacroze  Tramways  Co.  operating  high 
speed  electric  trains  between  Buenos  Ayres  and  Campo  de  Mayo,  which  will 
net  the  Buenos  Ayres  Central  Ry.  $375,000  (£75,000)  per  annum. 

This  railway  owns  valuable  terminals  at  Chacarita,  near  Buenos  Ayres, 
and  has  trackage  rights  over  the  Lacroze  Tramways  into  the  city. 


Buenos  Ayres  Midland  Ry. 

The  Buenos  Ayres  Midland  Ry.  is  operated  jointly  by  the  Buenos  Ayres 
Great  Southern  Ry.  and  the  Buenos  Ayres  Western  Ry.  under  an  agreement 
whereby  from  January  1,  1914,  to  June  30,  1916,  there  will  be  advanced  by  the 
two  lessee  companies  an  amount  sufficient  to  pay  3%  per  annum  on  both  the 
preference  and  ordinary  stocks.  After  June  30,  1916,  the  guaranteed  dividends 
will  be  at  the  rate  of  4%  per  annum.  Prior  to  January  1,  1914,  the  Buenos 
Ayres  Midland  Ry.  received  a  percentage  of  its  Gross  Receipts;  43.28%,  or 
$303,442  (£60,688)  in  1912-13;  $157,778  (£31,556)  in  1911-12. 

This  company  has  outstanding  $7,795,050  (£1,559,010)  4%  Debenture 
Stock,  $5,000,000  (£1,000,000)  5%  non-cumulative  preference  stock  (par  £l) 
and  $2,500,000  (£500,000)  ordinary  stock.  Prior  to  January  1,  1914,  no 
dividend  had  been  paid  on  either  preference  or  ordinary  stock,  and  the  balance 
sheet  as  of  June  30,  1913,  showed  that  there  was  due  for  advances  and  accrued 
interest  $2,305,156  (£461,031)  of  which  £275,872  was  due  the  B.  A.  Gt.  S.  Ry. 
and  £185,159  was  due  to  the  B.  A.  W.  Ry. 

The  Net  Revenue  Account  of  the  Buenos  Ayres  Midland  Ry.  for  1912— 
13  showed  the  following  results: 

21 


THE     RAILWAYS     OF     SOUTH 

Gross  Receipts £140,213  $701,064 

Working  Allowance 79,524  397,622 

Net  Receipts 60,688  303,442 

Other  Income 1,855  9,274 

Total  Income 62,543  312,716 

Interest,  etc 70,145  350,725 

Loss  for  year 7,602  38,009 

This  railway  extends  from  a  suburb  of  Buenos  Ayres  southwesterly  to 
Carhue  where  connections  are  made  with  the  Buenos  Ayres  Great  Southern 
Ry.  and  Buenos  Ayres  Western  Ry.     The  total  length  of  the  line  is  322  miles. 

Previous  to  the  leasing  of  the  company  a  large  amount  of  its  common 
stock  had  been  held  by  the  two  companies  leasing  the  property. 


22 


AND     CENTRAL     AMERICA 
Buenos  Ayres  Great  Southern  Ry.,  Ltd. 


Avg.  Miles 

Avg.  Miles 

Year 

Oper. 

Gross 

Year 

Oper. 

Gross 

1903-4 

2,471 

$14,265,030 

1908-9 

2,716 

$23,241,495 

1904-5 

2,481 

16,750,510 

1909-10 

2,770 

23,009,620 

1905-6 

2,506 

19,484,400 

1910-11 

3,044 

24,941,900 

1906-7 

2,613 

21,270,045 

1911-12 

3,380 

27,020,479 

1907-8 

2,613 

22,211,880 

1912-13 

*3,544 

32,846,724 

♦Total  mileage  operated  June  30,  1913,  3,582  miles. 


Stock  Outstanding 

June  30,  1913 

Ordinary $117,500,000 

♦Extension  Shares  (4%)....  15,000,000 

Preference  Stock  (5%) 40,000,000 


Bonds  Outstanding 

June  30,  1913 

Deb.  Stock  (4  %) $66,381,760 

Deb.  Stock  (4  Y2  %) 5,164,650 

Brandzen  Branch  Annuity 


(4  Yi  %)  ■ 


1,213,000 


♦Convertible  into  ordinary  stock  at  par  June  30,  1913.  A  portion  of  the  dividend  for 
1912-13  on  these  shares  was  charged  to  Construction  Account.  $13,250,000  (£2,650,000) 
additional  Extension  Shares  have  been  issued  to  stockholders  (final  payment  due  January 
1,  1914).     These  shares  are  convertible  into  ordinary  stock  after  June  30,  1914. 

tissued  to  Buenos  Ayres  Western  Ry.  to  purchase  Saladillo  Branch. 

{Issued  to  Buenos  Ayres  Western  Ry.  to  purchase  Brandzen  Branch. 

Capitalization 

Total — —  Per  Mile 

Stock £34,500,000          $172,500,000  $48,674 

Debenture  Stock 14,551,882             72,759,410  20,530 

Total 49,051,882            245,259,410  69,204 

Fixed  Charges  below  include  $768,288  for  rentals,  including  $232,409  interest  on  4  Yz  % 
Debenture  Stock  issued  to  purchase  Saladillo  Branch  and  $54,585  annuity  account  of 
Brandzen  Branch. 

Income  Account  Year  Ending  June  30,  1913 

Average  miles  operated,  3,544. 

Total —  Per  Mile 

Operating  Revenues £6,569,345  $32,846,724  $9,268 

Operating  Expenses 3,698,996  18,494,979  5,219 

Net  Operating  Revenues 2,870,349  14,351,745  4,049 

Other  Income 151,089  755,447  213 

Total  Net  Income 3,021,438  15,107,192  4,262 

Fixed  Charges 716,085  3,580,424  1,010 

Surplus 2,305,353  11,526,768  3,252 

Operating  Expenses 

Maintenance  of  Way £740,206  $3,701,032  $1,045 

Maintenance  of  Equipment 543,103  2,715,516  766 

Traffic  and  Transportation  Expenses 1,848,211  9,241,054  2,607 

♦General  Expenses 567,476  2,837,377  801 

Ratio  of  Operating  Expenses  to  Operating  Revenues,  56.3  per  cent. 

♦Includes  expenses  of  Wharves,  Elevators,  Restaurants,  etc.;  also  $391,451  (£78,290) 
3  %  Tax,  payable  under  Mitre  Law. 

Other  income  above  includes  $499,977  interest  on  Investments  in  Allied  companies. 


Appropriation  of  Gross  Income  1912-13 

For  Maintenance  Expenses 19.1  % 

For  Traffic,  Transportation  and  General  Expenses 35.9  % 

For  Fixed  Charges 10.7  % 

For  Surplus 34.3  % 


100.0% 


1912-13 

Ton  miles  per  mile  of  road ♦236,208 

Passenger  miles  per  mile  of  road 146,163 

♦Exclusive  of  tonnage  of  live  stock. 

23 


1911-12 

17.5% 
37.2  % 
12.4% 
32.9  % 

100.0  % 

1911-12 

♦175,685 
131,345 


THE     RAILWAYS    OF    SOUTH 

NOTES 

The  lines  of  this  company  extend  from  Buenos  Ayres  (where  extensive 
and  valuable  terminals  are  owned)  in  a  southerly  and  southwesterly  direction, 
through  the  province  of  Buenos  Ayres,  converging  at  Bahia  Blanca.  Practi- 
cally all  of  the  important  points  in  the  eastern,  central  and  southern  parts  of 
the  province  of  Buenos  Ayres  are  reached.  From  Bahia  Blanca  a  line  runs  in 
a  westerly  direction  to  Senillosa  from  which  latter  point  it  is  being  extended 
to  Pino  Hachedo  Pass  on  the  boundary  line  with  Chili  (nearly  200  miles). 
Branch  lines  are  to  be  constructed  from  Rio  Colorado  and  Darwin  on  the 
western  extension  of  the  main  line  through  the  province  of  Rio  Negro  to  Port 
San  Antonio  on  the  Gulf  of  San  Matias.  At  Port  San  Antonio  a  connection 
will  be  afforded  with  the  Patagonia  Ry.,  which  the  Government  is  construct- 
ing. A  large  portion  of  the  mileage  is  double-tracked,  while  in  the  vicinity  of 
Buenos  Ayres  the  line  has  four  tracks.  The  extensions  of  the  Buenos  Ayres 
Great  Southern  Ry.  authorized  June  30,  1912,  totalled  636  miles;  97  miles  of 
line  were  completed  during  1912-13. 

During  1912-13  the  sum  of  £2,319,889  (net)  was  expended  for  extensions, 
additions  and  betterments  and  for  new  equipment.  These  expenditures 
were  charged  to  Capital. 

£13,276,352  4%  Debenture  Stock  outstanding  June  30,  1913,  is  part  of 
an  authorized  issue  of  £15,750,000.  The  £1,032,930  and  £242,600  4^% 
Debenture  Stock  was  issued  to  the  Buenos  Ayres  Western  Ry.  in  payment  of 
the  Saladillo  Branch  and  of  the  Brandzen  Branch. 

The  £3,000,000  4%  Extension  Shares  outstanding  June  30,  1913,  will  be 
convertible  into  ordinary  stock  at  par  on  June  30,  1914,  together  with  £2,650,- 
000  Extension  Shares,  the  final  payment  on  which  fell  due  January  1,  1914. 
The  Ordinary  Stock  has  received  dividends  of  7%  per  annum  since  prior  to 
the  year  1900. 

The  gauge  of  this  road  is  5  feet  6  inches.  A  similar  gauge  is  used  by  most 
of  the  railway  lines  in  the  Republic  of  Argentine.  The  rail  used  in  the  main 
track  is  largely  85  to  100  pounds  in  weight. 

As  of  June  30,  1913,  the  company  had  on  hand  stores  and  supplies  to  the 
amount  of  £2,141,035  and  a  large  amount  of  current  assets.  Funds  for 
General  Reserve,  Insurance,  etc.,  were  on  hand  to  the  amount  of  £1,331,819. 

See  Buenos  Ayres  Midland  Ry.  regarding  lease  of  that  company  by  the 
Buenos  Ayres  Great  Southern  Ry.  and  Buenos  Ayres  Western  Ry. 

This  company  operates,  under  a  working  agreement,  the  line  of  the  Buenos 
Ayres,  Eusenada  &  South  Coast  Ry.,  which  operates  between  Elizalde  (near 
La  Plata)  to  Purenta  Rieles,  Magdalena  and  Atalaya,  and  which  is  to  build  a 
71j^  mile  branch  in  a  southerly  direction  to  Lezama.  About  43 J^  miles  of 
this  extension  is  under  construction. 

The  Buenos  Ayres  Great  Southern  Ry.  is  constructing  in  the  Rio  Negro 
Valley,  extensive  Irrigation  Works,  which  will  greatly  aid  in  the  development 
of  this  thinly  settled  section  of  country. 

During  1912-13  there  were  handled  a  total  of  27,454,719  passengers,  an 
increase  of  3,847,450.     The  principal  freight  traffic  included  the  following: 

24 


AND     CENTRAL  AMERICA 

Total  Receipts 

LiveStock 6,562,931  £454,285 

Wheat  (tons) 1,744,572  501,674 

Maize  (tons) 997,182  246,611 

Oats  (tons).... 836,856  360,009 

Stone  and  Lime  (tons) 921,803  303,139 

General  Goods  (tons) 2,531,595  1,331,852 


Buenos  Ayres  Western  Ry. 


Total  Miles 

Year 

Oper. 

Gross 

1907-8 

1,219 

$11,026,185 

1908-9 

1,305 

11,484,300 

1909-10 

1,365 

11,502,550 

Slock  Outstanding 
June  30,  1913 

tOrdinary $58,738,300 

Extension  (4  %) . . . 
Preference  (5%) .  . 
Preference  (4^%) 

♦Ordinary,  £11,747,660 


Total  Miles 

Year          Oper.           Gross  Surplus 

1910-11    1.586     $13,170,932  $5,567,169 

1911-12    1,659       12,128,413  4,617,751 

1912-13    1,781       14,530,040  6,369,425 

Bonds    Outstanding 

June  30,  1913 

{Gov't  Bonds $5,000,000 

Debenture  Stock  (4%) 30,533,330 


28,000,000 
1,500,000 
12,761,700  | 

4%  Extension  Shares  (converted  into  Ordinary  Shares  July  1, 
1913)  £2,000  000;  4%  Extension  Shares,  convertible  into  Ordinary  Shares  in  1915,  £3,- 
600,000;  Preference  Shares   (5%),   £300,000;  Preference  Shares   (4)4%),   £2,552,340. 

t$10,000,000  additional  Ordinary  Stock  issued  in  exchange  for  a  like  amount  of  Extension 
Shares  July,  1913.      {Government  Loan  of  1888. 


Capitalization 


Stock . 
Bonds. 
Total.. 


£20,200,000 

7,106,666 

27,306,666 


Total 
$101,000,000 
35,533,330 
136,533,330 


Per  Mile 

$56,710 

19,951 

76,661 


Fixed  Charges  below  include  $236,001  (£47,200)  paid  to  the  B.  A.  Midland  Ry.  as  rental 
under  Working  Agreement,  and  $26,883  Income  Tax. 


Total  miles  operated,  1,781. 


Income  Account  Year  Ending  June  30,  1913 


Gross  Receipts £2,906,008 


-Total- 


Operating  Expenses. 

Net  Receipts 

Other  Income 

Total  Net  Income.  . 

FixedCharges 

♦Surplus 


1,659,515 
1,246,493 

374,890 
1,621,383 

347,498 
1,273,885 


$14,530,040 
8,297,574 
6,232,466 
1.874,451 
8,106,917 
1,737,492 
6,369,425 


Per  Mile 
$8,158 
4,659 
3,499 
1,052 
4,551 
975 
3,576 


Operating  Expenses 

£342,998 


$963 

794 

2,363 

539 


Maintenance  of  Way 

Maintenance  of  Equipment 282,691 

Traffic  and  Transportation  Expenses 841,736 

♦General  Expenses 192,090 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  57.1  per  cent. 

♦Contains  certain  expenditures  usually  included  in  Fixed  Charges  in  the  statements  of 
railroads  in  the  United  States  ($179,613,  Tax  of  3%  payable  under  the  Mitre  Law,  etc.) 
Other  Income  above  includes  $748,466  (£149,693)  from  rentals  (see  Notes). 


$1,714,984 

1,413,456 

4,208,682 

960,452 


Appropriation  of  Gross  Income 

For  Maintenance  Expenses 

For  Traffic,  Transportation  and  General  Expenses 

For  Fixed  Charges 

For  Surplus 


1912-13 

19.1% 
31.5% 
10.6% 

38.8% 


100.0% 

1912-13 

Ton  miles  per  mile  of  road ' 330,536 

Passenger  miles  per  mile  of  road 115,980 

25 


1911-12 

15.5% 
35.9% 
13.2% 
35.4% 

100.0% 

1911-12 

278,294 
111,619 


THE     RAILWAYS    OF     SOUTH 

NOTES 

The  5%  and  4^%  Preference  Shares  are  repayable  at  £11  per  £10  share 
in  the  event  of  the  company  being  liquidated  or  the  line  sold.  The  4% 
Extension  shares  of  1913  (£2,000,000)  were  convertible  into  Ordinary  Stock 
at  par,  July  1,  1913.  The  (£3,600,000)  4%  Extension  shares  of  1915  (issued 
in  1911-12)  are  convertible  on  similar  terms  in  1915.  An  issue  of  £3,400,000 
4M%  Guaranteed  Preference  Stock  has  been  authorized.  None  of  this  class 
of  stock  had  been  issued  to  June  30,  1913.  Dividends  of  7%  per  annum  were 
paid  on  the  Ordinary  Stock  from  1902-3  to  1909-10,  and  in  1911-12  and  1912— 
13;  in  1910-11  1XA%  was  paid. 

The  line  of  this  company  extends  westward  from  Buenos  Ayres  into  the 
districts  of  La  Pampas  and  San  Luis. 

A  number  of  extensions  are  authorized  or  are  under  construction.  A  por- 
tion of  the  mileage  suburban  to  Buenos  Ayres  is  to  be  operated  by  electricity. 

An  extension  from  Bagual  to  Colonia  Alvear  (122  miles)  was  opened  Decem- 
ber 1,  1912. 

Live  stock  (mostly  sheep)  form  one  of  the  Buenos  Ayres  Western  Ry.'s 
principal  sources  of  traffic.  7,345,845  live  stock  were  handled  in  1912—13, 
also  2,896,015  tons  of  goods,  of  which  all  except  815,136  tons  consisted  of 
Products  of  Agriculture. 

A  total  of  11,462,842  passengers  were  handled  in  1912-13,  as  against 
9,572,758  in  1911-12,  and  against  3,694,321  in  1905-6. 

The  company  received  in  1912-13  £149,693  as  rental  and  as  interest  on 
securities  received  in  payment  for  lines  disposed  of  to  other  companies  as 
follows:  Central  Argentine  Ry.  Northern  Branches,  £90,787;  Buenos  Ayres 
Great  Southern  Ry.,  interest  on  £1,032,930  4j^%  Debenture  stock  for  the 
Saladillo  Branch,  £48,482;  same  company  for  Rental  Brandzen  Branch, 
£10,917,  and  B.  A.  &  Pacific  Ry.  interest  in  respect  of  Chacarita  Branch, 
£1,507. 

Jointly  with  the  Buenos  Ayres  Great  Southern  Ry.  this  company  has 
acquired  the  Buenos  Ayres  Midland  Ry.,  (see  that  company),  Buenos  Ayres  to 
Carhue  (320  miles).  3%  per  annum  from  January  1,  1914,  until  June  30, 
1916,  and  4%  per  annum  thereafter  has  been  guaranteed  on  the  preference  and 
ordinary  shares  of  the  Midland  Ry. 


26 


AND     CENTRAL     AMERICA 


Central  Argentine  Ry. 


Avg.  Mile                                                                    Avg.  Miles 
Year        Oper.        Gross Year         Oper. Gross 

1911-12     2,870     $26,119,075      £5,223,815  1912-13     *  2,994   $32,446,730       £6,489,346 

♦The  total  mileage  in  operation  June  30,  1913,  was  3,057  miles. 

Stock  Outstanding  Bonds  Outstanding 

June  30,  1913  June  30,  1913 

♦Consolidated  Ordinary....   $139,381,400  tFixed  interest $64,944,325 

Deferred 4,059,000 

Preference  (4  Vi  %) 44,827,115 

♦Includes  $13,446,650  (£2,689,330)  new  shares  of  1913. 

tlncludes   $10,087,500    (£2,017,500)   perpetual  Western  Annuity  issued  to  the  B.  A. 
Western  Ry.  in  payment  for  lines  acquired. 

Capitalization 

Total Per  Mile 

Stock £37,653,503          $188,267,515  $62,882 

Obligations 12,988,865              64,944,325  21,691 

Total 50,642,368            253,211,840  84,573 

Fixed  Charges  below  include  $453,935  (£90,787)  Western  Annuity. 

Income  Account  Year  Ending  June  30,  1913 

Average  miles  operated,  2,994. 

Total Per  Mile 

Gross  Receipts £6,489,346  $32,446,730  $10,837 

Operating  Expenses 3,718,935  18,594,675  6,210 

Net  Receipts 2,770,411  13,852,055  4,627 

Other  Income 174,001  870,003  291 

Total  Net  Income 2,944,412  14,722,058  4,918 

Fixed  Charges 544,703  2,723,514  910 

♦Surplus 2,399,709  11,998,544  4,008 

Operating  Expenses 

Total Per  Mile 

Maintenance  of  Way £61 6,741             $3,083,705  $1,030 

Maintenance  of  Equipment 624,338               3,121,690  1,042 

Traffic  and  Transportation  Expenses 2,009,619             10,048,095  3,356 

General  Expenses 468,237               2,341,185  782 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  57.3  per  cent. 

♦This  Surplus  before  deducting  $1,470,000  (£294,000)  transferred  to  Funds  for  Renewals, 
Accidents,  Claims,  Casualties,  General  Reserve,  etc. 

Other  Income  above  includes  $527,810  (£105,562)  from  Interest  during  Construction. 

Appropriation  of  Gross  Income 

1912-13 

For  Maintenance  Expenses 18.6  % 

For  Traffic,  Transportation  and  General  Expenses 37.2  % 

For  Fixed  Charges 8.2  % 

For  Surplus 36.0  % 

100.0  % 
27 


THE     RAILWAYS    OF    SOUTH 

NOTES. 

The  Preference  Stock  is  entitled  to  dividends  at  the  rate  of  4}^%  per 
annum  in  priority  to  the  Consolidated  Ordinary  Stock  and  the  Deferred  Stock. 
$44,827,115  (£8,965,423)  of  this  class  of  stock  was  outstanding  June  30,  1913. 
The  authorized  issue  of  Preference  Stock  is  limited  to  one-half  of  the  amount 
of  Ordinary  and  Deferred  Stocks  issued  from  time  to  time. 

The  Consolidated  Ordinary  Stock,  $138,381,400  (£27,676,280)  of  which  is 
outstanding,  including  $13,446,650  (£2,689,330)  new  shares,  1913,  is  entitled 
to  5%  per  annum,  after  which  the  Deferred  Stock  (£811,800  outstanding) 
receives  5%,  then  both  issues  share  pro  rata  in  further  dividends. 

The  4%  Debenture  Stock,  $50,688,820  (£10,137,764)  of  which  was  out- 
standing June  30,  1913,  is  a  first  floating  charge  on  the  entire  property,  sub- 
ject only  to  the  £2,017,500  annuity  issued  to  the  Buenos  Ayres  Western 
Ry.  in  payment  for  lines  acquired,  and  to  £204,814  3}/£%  Central  Debenture 
Stock.  The  Debenture  capital  cannot  exceed  two-thirds  the  share  capital 
outstanding  at  any  time. 

For  the  years  ending  June  30,  1911,  1912  and  1913,  dividends  of  6%  per 
annum  were  paid  on  the  Consolidated  Ordinary  Stock  and  on  the  Deferred 
Stock. 

The  Central  Argentine  Ry.  operates  an  important  system  of  railways 
extending  from  Buenos  Ayres  and  Rosario,  to  Cordoba,  Tucuman,  Santa  Fe, 
etc.,  including  two  lines  between  Buenos  Ayres  and  Rosario,  one  of  which  is 
the  main  line  extending  to  Tucuman.  The  country  served  by  this  railway 
system  is  highly  productive  and  is  growing  rapidly.  The  Gross  Receipts  of 
the  company  were  during  1912-13  the  largest  of  any  railway  in  Argentine 
Republic,  and  presumably  in  South  America.  During  1912-13,  the  railway 
handled  2,746,170  tons  of  maize  and  1,054,689  tons  of  wheat  (total  goods 
handled  producing  revenue  7,948,964  tons),  also  1,908,412  head  of  live  stock 
(including  1,198,758  cattle).  A  total  of  21,721,273  passengers  were  also 
carried  in  1912-13. 

This  railway  connects  at  Tucuman  with  the  Government  owned  line,  the 
Argentine  Northern  Central  State  Ry.,  which  extends  to  La  Guiaca  on  the  Boli- 
vian frontier,  where  it  will  connect  with  a  line  of  railway  to  be  built  from 
Tupeza,  in  the  latter  Republic. 

A   large   suburban    mileage   is   being  electrified. 

As  of  September  30,  1913,  it  was  stated,  that  of  new  branches  and  exten- 
sions authorized  totalling  517^  miles,  282  miles  were  open  to  traffic,  rail  had 
been  laid  on  442  miles  and  490^2  miles  were  graded. 

The  balance  sheet  as  of  June  30,  1913,  showed  an  extremely  strong  financial 
condition.  The  amounts  of  Cash,  Securities  held  for  Investment,  Stores,  etc., 
greatly  exceeded  Current  Liabilities,  and  large  sums  were  reserved  for  Renewals, 
Insurance,  Casualties,  etc.,  etc. 

28 


AND     CENTRAL     AMERICA 

There  follows  a  table  showing  the  growth  of  this  System  during  a  period  of 
ten  years: 

1902-03  1912-13  Inc.  % 

Average  Miles  Operated 2,316  2,994  29.3 

No.  of  Passengers  Carried 7,070,289  21,721,273  207.2 

*Tons  of  Goods  Carried 3,939,757  9,449,209  139.8 

Tons  of  Live  Stock  Carried 300,932  654,895  117.6 

Gross  Receipts £2,796,296  £6,489,346  132.1 

Net  Receipts £1,389,072  £2,770,411  99.4 

Train  Miles 5,042,089  10,314,245  104.6 

Accumulated  Reserve  Funds £643,897  f£2,173,138  237.5 

*Includes  company  freight. 

fjune  30,  1912;  amounts  larger  on  June  30,  1913. 


Cordoba  Central  Ry. 


(Amalgamated  System.) 

Avg.  Miles  Avg.  Miles 

Year  Oper.  Gross  Receipts  Year  Oper.  Gross  Receipts 

1909-10      1,149     $6,600,915      £1,320,183  1912-13     1,176     $9,550,265      £1,910,053 

1910-11      1,170       7,652,955        1,530,591  *1913  1,176     *4,657,125  *931,425 

1911-12      1,172       8,217,215        1,643,972        | 

*Six  months  January  1  to  June  30,  1913.  See  Notes  regarding  merger  under  date  of 
January  1,  1913,  of  the  Cordoba  Central  Ry.  (Original  Line  and  Central  Northern  Section), 
the  Cordoba  &  Rosario  Ry.  and  the  Cordoba  Central  Buenos  Ayres  Extension  Ry. 

Stock  Outstanding  Bonds  Outstanding 

June  30,  1913  June  30,  1913 

♦Ordinary $20,343,635        |        Debenture  Stock $56,258,590 

1st  Preference  (5  %) 7,200,000        I 

t2nd  Preference  (5  %) 8,309,475        | 

*$537,120  of  this  Stock  does  not  rank  for  dividend  until  July  1,  1917. 

t$3, 500,000  of  this  Stock  does  not  rank  for  dividend  until  July  1,  1916. 

Capitalization 

Total Per  Mile 

Stock £7,170,622          $35,853,110  $30,487 

Bonds 11,251,718            56,258,590  48,839 

Total 18,422,340            92,111,700  89,326 

Note. — The   Gross   Receipts   for   the   year   ending   June   30,    1913,   were  $9,550,265 

(£1,910,053),  equal  to  $8,121  per  mile.     The  Net  Receipts  were  $2,731,765  (£546,353> 
equal  to  $2,323  per  mile. 

Income  Account  Six  Months  Ending  June  30,  1913 

(Amalgamated  System) 

Average  miles  operated  1,176. 

Total Per  Mile 

Gross  Receipts £931,425  $4,657,125  $3,960 

Operating  Expenses 640,835  3,204,175  2,725 

Net  Receipts 290,590  1,452,950  1,235 

Other  Income 61,087  305,435  260 

Total  Net  Income 351,677  1,758,385  1,495 

Fixed  Charges 230,627  1.153,135  980 

♦Surplus 121,050  605,250  515 

Operating  Expenses 

Maintenance  of  Way £75,645  $378,225  $321 

Maintenance  of  Equipment 69,936  349,680  297 

Transportation  Expenses 397,907  1,989,535  1,692 

General  Expenses 97,347  486,735  415 

Ratio  of  Operating  Expenses  to  Gross  Receipts  68.8  per  cent. 

*This  surplus  before  deducting  $57,485  (£11,497)  transferred  to  Renewals  Reserve 
Account. 

Other  Income  above  includes  $33,520  (£6,704)  from  Rental  (Net)  of  Administration 
Building  and  $269,925  (£53,985)  amount  provisionally  agreed  as  payable  by  Argentine 
Ry.  to  make  up  guaranteed  Net  Traffic  for  the  half-year  ending  June  30,  1913. 

29 


THE     RAILWAYS    OF    SOUTH 

NOTES. 

On  January  1,  1913,  the  Cordoba  Central  Original  Line  and  Central  North- 
ern Section,  the  Cordoba  Central  Buenos  Ayres  Extension  Ry.  and  the 
Cordoba  &  Rosario  Ry.  were  amalgamated,  and  will  in  future  be  operated 
as  the  Cordoba  Central  Ry.  The  new  company  has  authorized  and  has 
outstanding  the  following  securities: 

Authorized        Outstanding 

Ordinary  Income  Stock £5,000,000        *£4,068,620 

Shares  (par  £l) 107  107 

5%  Cumulative  First  Preference  Income  Stock         2,500,000  1,400,000 

5%  Second  Preference  Income  Stock 2,500,000  fl.661,895 

4%  First  Debenture  Stock 8,000,000  7,730,000 

4J^%  Second  Debenture  Stock 5,000,000  3,521,718 

£23,000,107      |£18,422,340 

*£  107,424  Ordinary  Income  Stock  does  not  rank  for  dividends  until  July 
1,  1917. 

f£700,000  Second  Preference  Income  Stock  does  not  rank  for  dividends 
until  July    1,    1916. 

J£l,767  has  been  paid  off  in  cash. 

For  the  six  months  ending  June  30,  1913,  dividends  at  the  rate  of  5%  per 
annum  were  paid  on  the  First  and  Second  Preference  Income  Stock,  and  a 
dividend  of  2J^%  per  annum  (1J4%  f°r  SIX  months)  was  paid  on  the  Ordinary 
Stock. 

The  Argentine  Ry.  has  acquired  control  of  this  System.  For  the  six 
months  ending  June  30,  1913,  the  Cordoba  Central  Ry.  Co.  received  from 
the  Argentine  Ry.,  as  guaranteed,  the  sum  of  £53,985,  to  make  up  additional 
net  traffic. 

This  railway  system  (metre  gauge)  operates  from  Buenos  Ayres,  where  a 
terminal  and  office  building  has  been  erected,  through  a  thickly  populated 
country  to  Rosario — thence  to  Cordoba,  and  northward  to  La  Madrid 
Tucuman,  etc. 

The  cost  of  the  Buenos  Ayres  Extension  to  the  date  of  the  merger  was 
shown  to  be  £3,153,118  ($15,765,590)  and  the  interest  paid  on  the  B.  A. 
Extension  5%  Debentures  under  interest  guarantee  (bv  Cordoba  Central 
Ry.)  was  £982,230  ($4,911,150).  The  Net  Earnings  from  May  11,  1909, 
to  December  31,  1912,  and  the  rents  from  the  administration  building  for 
that  period  were  £244,372  ($1,221,860).  The  Capital  Expenditure  (includ- 
ing a  portion  of  the  above)  for  the  year  1912-13,  on  the  entire  System,  was 
£473,566  ($2,367,830). 

For  the  six  months  ending  December  31,  1912,  the  Cordoba  Central  Ry. 
proper  including  the  Original  Line  and  Central  Northern  Section  reported 
the  following  earnings: 

♦Gross  Receipts £570,33 1         $2,85 1,655 

Working  Expenses 439,489  2,197,445 

Net  Receipts £130,842  $654,210 

♦£417,538  ($2,087,690)  Central  Northern  Section;  £152,793  ($763,965) 
Original  Line. 

30 


AND     CENTRAL    AMERICA 

For  a  similar  period  the  Cordoba  Central  Buenos  Ayres  Extension  Ry. 
was  operated  with  the  following  results: 

Gross  Receipts £191,493  $957,465 

Working  Expenses 156,077  780,385 

Net  Receipts £35,416  $177,080 

To  the  net  receipts  as  above  should  be  added  £7,414  ($37,070),  the  Net 
Rental  from  the  Administration  Building  in  Buenos  Ayres. 

For  a  similar  period  during  1911,  the  Gross  Receipts  were  £109,353  and 
the  Net  Receipts  £27,782. 

The  Cordoba  &  Rosario  Ry.'s  earnings,  July  1  to  December  31,  1912,  were 
as  follows: 

Gross  Receipts £216,804         $1,084,020 

Working  Expenses 127,299  636,495 

Net  Receipts 89,505  $447,525 

Other  Income 106  530 

Total  Net 89,611  448,055 

Fixed  Charges,  Dividends,  etc 71,209  356,045 

Surplus '.  .  .  18,402  92,010 

An  issue  of  £700,000  4j^%  Second  Debenture  Stock  was  made  in  March 
1913,  to  provide  additional  equipment  and  improvements;  48  locomotives, 
1,350  freight  cars  and  23  passenger  coaches  are  being  provided. 

The  new  works  and  improvements  projected  include  the  laying  of  a  third 
rail  to  a  point  about  64  miles  from  Buenos  Ayres,  where  a  junction  will  be 
made  with  a  line  to  be  constructed  by  the  Entre  Rios  Rys.  This  connection 
will  provide  a  route  for  the  Entre  Rios  main  line  traffic  into  the  Cordoba 
Central  terminals  in  the  City  of  Buenos  Ayres,  and  it  is  anticipated  that  the 
latter  railway  will  obtain  considerable  revenue  from  that  source. 

The  Amalgamated  System  in  1912-13  handled  3,837,921  tons  of  freight 
and  live  stock,  including  978,774  tons  of  firewood  and  coal,  720,679  tons  of 
wheat  and  other  cereals,  578,531  tons  of  sugar  and  sugar  cane,  etc.  157,842 
animals  were  carried  during  the  year. 

This  company  owned  on  June  30,  1913,  252  locomotives,  405  passenger 
train  cars  (including  68  sleeping  cars),  5,863  freight  train  cars  and  7  cranes. 


Central  Ry.  of  Chubut  Co. 

This  company  was  incorporated  in  1886  to  construct  a  railway  in  the 
Province  of  Chubut,  Argentine  Republic,  extending  from  Port  Madryn,  the 
chief  port  of  Patagonia  to  Trelaw  and  Gaiman.  The  line  is  51  miles  long, 
is  in  good  working  order,  and  serves  principally  a  colony  of  Welsh  settlers. 
At  Port  Madryn  a  valuable  steel  pier  (completed  1910)  is  owned.  According 
to  recent  reports  12  additional  miles  of  road  were  under  construction. 

31 


THE     RAILWAYS     OF     SOUTH 

The  railway  is  controlled  by  the  Port  Madryn  (Argentina)  Co.,  and  has 
paid  dividends  on  its  £200,000  stock  (par  £10)  in  recent  years  as  follows: 
1909-10,  10%  (partly  out  of  accumulated  profits);  1910-11  and  1911-12,  6% 
each;    1912-13,  7%. 


Entre  Rios  Rys. 

Avg.  Miles  Avg.  Miles 

Year                Oper.            Gross                     Year             Oper.                Gross  Surplus 

1907-8  656  $1,503,435  1910-11  688  $2,393,649  

1908-9.  675  1,832,905  1911-12  688  2,360,505  

1909-10         688  2,028,806  1912-13  730  3,055,727         $1,096,852 

Stock  Outstanding  Bonds  Outstanding 

June  30,  1913  June  30,  1913 

Common $8,915,700               Debenture  Stock  (4  %) $7,525,000 

Preference  (5  %) 10,000,000               Debentures  (5  %) 3,500,000 

Preference  2d  (4  %) 3,670,245  Cons.  Deb.  Stk.  (5  %) 3,328,950 

Capitalization 

Total Per  Mile 

Stock £4,517,189          $22,585,945  $30,940 

Debentures  and  Debenture  Stock 2,870,790           14,353,950  19,663 

Total 7,387,979           36,939,895  50,603 

Income  Account  Year  Ending   June  30,   1913 

Average  miles  operated,  730. 

Total Per  Mile 

Gross  Receipts £611,145            $3,055,727  $4,187 

Operating  Expenses 345,846              1,729,231  2,369 

Net  Receipts 265,299              1,326,496  1,818 

Other  Income 71,391                 356,957  489 

Total  Net  Income 336,690              1,683,453  2,307 

Fixed  Charges 117,320                  586,601  804 

♦Surplus 219,370              1,096,852  1,503 

Operating  Expenses 

Total Per  Mile 

Maintenance  of  Way £51,669               $258,343  $354 

Maintenance  of  Equipment 43,844                219,221  300 

Traffic  and  Transportation  Expenses 165,436                827,180  1,133 

tGeneral  Expenses 84,897                 424,487  582 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  56.6  per  cent. 

*This  Surplus  before  deducting  $450,042  (£90,008)  Renewals  and  Abnormal  Flood  Ex- 
penditure— Balance  after  deduction  of  Reserve  and  Renewals  Account. 

tlncludes  $145,908  (£21,182)  expenses  of  Maritime  Service. 

Other  Income  above  includes  $338,344  (£67,669)  received  from  the  Argentine  Ry.  under 
Working  Agreement,  of  which  $219,468  is  repayable  out  of  future  Surplus,  $12,500  (£2,500) 
from  Subvention  Account  and  $5,014  (£1,003)  from  Sale  of  Land. 

Appropriation  of  Gross  Income 

1912-13  1911-12 

For  Maintenance  Expenses 14.0  %  17.0  % 

For  Traffic,  Transportation  and  General  Expenses 36.7  %  41.8  % 

For  Fixed  Charges 17.2  %  18.0  % 

For  Surplus 32.1  %  23.2  % 

100.0%  100.% 

1912-13            1911-12            1910-11  1909-10 

Ton  miles  per  mile  of  road 133,616            107,932            111,901  97,747 

Passenger  miles  per  mile  of  road 27,346               25,755               25,954  26,480 

32 


AND     CENTRAL     AMERICA 

NOTES 

This  line  extends  from  Zarate  (168  miles  from  Buenos  Ayres)  via  ferry  to 
Ibicuy  (49  miles)  and  from  the  latter  point  to  Concordia  in  the  province  of 
Entre  Rios,  with  several  branches  and  extensions.  This  line  forms  part  of  a 
direct  through  route  between  Buenos  Ayres  and  Ascuncion,  the  capital  of 
Paraguay.  Through  passenger  service  via  this  railway  and  via  connecting 
lines  was  established  between  these  two  points  October,  1913.  It  is  expected 
that  the  ferry  route  across  the  Parana  River  will  be  shortened  from  49  miles 
to  18  miles,  and  that  the  company  will  secure  improved  terminal  facilities  in 
Buenos  Ayres.  The  tracks  of  the  Cordoba  Central  System  will  be  used  and 
the  latter  railway  will  construct  a  third  rail  owing  to  the  difference  in  the  gauges 
of  the  two  lines.  (Buenos  Ayres  Central  Ry.  tracks  are  at  present  used  be- 
tween Zarate  and  Buenos  Ayres.) 

The  first  preference  stock  is  entitled  to  dividends  at  the  rate  of  5%  per 
annum.  On  June  30,  1904,  39j^%  in  back  dividends  remained  due  on  this 
stock.  In  lieu  of  the  same  the  first  preference  shareholders  received  105%  in 
4%  non-cumulative  second  preference  stock  and  agreed  to  waive  their  cumula- 
tive right  until  dividends  shall  have  been  paid  on  both  classes  of  preference 
stock  for  three  consecutive  years. 

In  each  of  the  years  1909-10,  1910-11,  1911-12  and  1912-13,  5%  was  paid 
on  the  first  preference  stock,  while  1%,  4%,  4%  and  4%  each  was  paid  on  the 
second  preference  stock.  In  1910-11,  1^%  was  paid  on  the  ordinary  stock. 
No  dividend  was  paid  on  the  ordinary  stock  in  1909-10,  1911-12  and  1912-13. 

During  1912-13  the  principal  freight  traffic  consisted  of  general  merchandise 
(30%),  wheat  (11^%),  linseed  (17.4%)  and  livestock  (12.2%). 

On  July  12,  1912,  a  company  (incorporated  in  Maine)  known  as  the  Argen- 
tine Ry.  (which  see)  was  formed  for  the  purpose  of  consolidating  and  con- 
structing various  railway  lines  in  the  Republic  of  Argentine.  This  company- 
has  issued  $15,000,000  6%  preferred  stock  and  $30,000,000  common  stock, 
and  is  controlled  by  interests  similar  to  those  in  control  of  the  Brazil  Ry. 
(Speyer  Bros.,  Kuhn,  Loeb  &  Co.,  Sir  Wm.  C.  Van  Home,  Percival  Farquhar, 
etc.)  The  charter  of  this  company  is  a  broad  one  and  empowers  it  to  operate 
railways,  traction  lines,  gas  and  electric  light,  heat  and  power  plants,  to  deal 
in  land,  to  mine,  to  refine  oil,  etc.,  etc.  Under  date  of  October  22,  1912,  the 
Argentine  Ry.  offered  to  lease  the  Entre  Rios  Rys.,  Ltd.  Under  terms  of  the 
agreement  in  the  event  of  the  Net  Revenue  not  being  equal  in  amount  to 
the  interest  and  dividends  on  the  debenture  and  preference  stock  issued  and  to 
the  following  dividends  on  the  ordinary  stock  of  the  Entre  Rios  Rys.,  Ltd.,  viz.: 
2%  per  annum  from  November  1,  1912,  to  June  30,  1913;  3%  for  1913-14; 
4%  for  1914-15  and  1915-16,  and  5%  thereafter,  the  Argentine  Ry.  guarantees 
to  provide  from  its  own  resources  towards  any  deficiency  there  may  be,  a  sum 
not  exceeding  in  any  one  year,  the  amount  of  the  dividend  above  specified 
for  that  year  on  the  ordinary  stock.  The  Argentine  Ry.  further  guaranteed 
the  dividends  on  the  first  and  second  preference  shares  for  1912-13.  The 
dividend  on  the  first  preference  shares  will  be  cumulative  hereafter.  All 
surplus,  above  dividend  requirements,  will  be  divided  25%  to  the  Entre  Rios 
Rys.  and  75%  to  the  Argentine  Ry.  The  profits  from  the  sale  of  lands  at 
Ibicuy  will  be  divided,  75%  to  the  Entre  Rios  Rys.  and  25%  to  the  Argentine 
Ry.  In  1912—13  under  the  terms  of  this  agreement  the  Argentine  Ry.  paid 
to  the  Entre  Rios  Ry.  the  sum  of  £67,669,  of  which  £43,894  is  repayable 
out  of  future  surplus  revenues. 

33 


THE     RAILWAYS     OF     SOUTH 

The  Net  Revenue  of  the  Entre  Rios  Rys.,  including  amounts  received  from 
the  Argentine  Ry.  under  the  working  agreement  (as  above),  is  applicable 
to  the  payment  of  dividends  in  full  on  the  preference  stocks  before  dividends 
are  paid  on  the  ordinary  stock. 

Prior  to  September,  1913,  this  company  had  acquired  over  £800,000  and 
the  Argentine  Ry.  over  £500,000  stock  of  the  Argentine  North  Eastern  Ry. 
(see  that  company). 

Negotiations  are  in  progress  between  the  Entre  Rios  Rys.  and  the  Govern- 
ment of  Entre  Rios  in  which  the  former  proposes  to  take  over  these  provincial 
lines  and  operate  them. 

In  1912-13,  £200,000  4%  Debenture  Stock  and  £750,000  5%  Debenture 
Stock  was  issued,  the  proceeds  to  be  used  to  acquire  equipment,  etc.  See 
Argentine  Ry.,  Argentine  North  Eastern  Ry.  and  Buenos  Ayres  Central  Ry. 


Villa  Maria  &  Rufino  Ry. 

The  Buenos  Ayres  &  Pacific  Ry.  operates  this  road  under  agreement  and 
guarantees  the  interest  on  its  Debentures  and  a  dividend  of  4%  on  its  stock. 
Beginning  July  1,  1917,  the  rate  will  be  4J^%.  Prior  to  June  30,  1913,  the 
dividend  rate  was  3j^%.  The  Capitalization  of  the  company  as  of  June  30, 
1913,  was  as  follows: 

First  Debenture  Stock  4% $3,367,500  £673,500 

Guaranteed  Stock 1,968,750  393,750 

$5,336,250  £1,067,250 

The  Gross  Receipts  for  the  last  five  years  to  June  30  were  as  follows: 

1909 £75,183  $375,915 

1910 70,351  351,755 

1911 77,308  386,540 

1912 62,792  313,960 

1913 61,903  309,515 

The  lease  of  this  railway  by  the  Buenos  Ayres  &  Pacific  Ry.  expires  1920. 
The  Government  may  purchase  the  line  at  20%  above  its  adjudged  value. 

The  Villa  Maria  &  Rufino  Ry.  connects  the  main  line  of  the  Buenos  Ayres 
&  Pacific  Ry.  (at  Rufino)  with  the  Central  Argentine  Ry.  at  Villa  Maria. 

On  June  30,  1913,  there  was  due  the  B.  A.  &  P.  Ry.  for  advances  made  by 
the  latter  the  sum  of  £67,477  ($337,387). 


34 


AND     CENTRAL    AMERICA 
BOLIVIA  AND  CHILI. 


Bolivia. 


Bolivia  is  a  country  in  which  railroad  building  is  an  expensive  luxury. 
As  is  well  known,  the  Republic  has  no  seacoast  and  to  reach  it  from  the  Pacific 
the  ports  of  either  Chili  or  Peru  must  be  used,  necessitating  a  sharp,  zigzag 
climb  through  the  passes  of  the  Andes.  La  Paz,  the  capital  and  chief  city, 
has  usually  been  the  objective  point  striven  for  by  the  railways  and  to-day 
it  has  three  outlets  to  the  Pacific,  namely:  the  Arica-La  Paz  Ry.,  com- 
pleted in  1912-13;  the  Antofagasta  (Chili)  and  Bolivia  Ry.  and  the  Peruvian 
Corporation's  Guaqui-La  Paz  Ry.-Lake  Titicaca-Southern  Ry.  of  Peru 
System.  The  two  last  named  of  these  companies  are  described  elsewhere. 
The  journey  to  the  coast  by  these  lines  requires  about  45  hours  and  29  hours 
respectively. 

The  Arica-La  Paz  Ry.  (just  completed)  forms  the  shortest  existing  route 
to  the  Pacific.  It  is  about  248  miles  in  length  and  its  construction  was 
extremely  costly,  the  rack  rail  system  being  used  for  a  stretch  of  fully  21 
miles.  The  journey  from  capital  to  coast  requires  about  18  hours,  and  the 
highest  altitude  reached  is  about  14,108  feet.  A  branch  has  been  built 
to  the  Corocoro  Mining  District. 

The  Antofagasta  (Chili)  &  Bolivia  Ry.  and  its  subsidiary,  the  Bolivia 
Ry.,  are  the  nation's  principal  highways  of  commerce.  The  former  railway, 
running  from  the  Chilian  port  of  Antofagasta,  enters  Bolivia  near  Ollague 
(275  miles  from  the  coast)  and  runs  in  a  northerly  direction,  keeping  at  a 
level  of  from  12,000  to  12,500  feet,  until  it  meets  the  Bolivia  Ry.  at  Oruro, 
the  latter  line  continuing  on  to  Viachi,  the  junction  point  with  the  Guaqui-La 
Paz  Ry.  From  Ollague  Station,  a  branch  60  miles  long  has  been  constructed 
to  Collahuasi,  where  some  important  copper  mines  are  located.  This 
road  climbs  to  an  altitude  of  15,809  feet.  A  line,  completed  in  1912  by 
the  Bolivia  Ry.,  from  Mulatos  on  the  main  line  to  the  mining  center,  Potosi 
(108  miles),  reaches  a  summit  of  15,814  feet  and  represents  another  wonderful 
feat  of  engineering.  This  extension  is  surveyed  to  Sucre,  the  former  capital, 
about  105  miles  beyond  Potosi,  and,  when  completed,  will  tap  a  country 
noted  for  the  richness  of  its  agricultural  lands.  Another  line — from  Uyani 
on  the  A.  &  B.  Ry.  to  Tupiza — is  being  built  by  the  Bolivia  Ry.  Tupiza 
lies  in  a  southerly  direction  about  125  miles  from  the  starting  point  of  the 
extension  and  only  66  miles  from  the  Argentinian  frontier.  The  road  is 
eventually  to  be  built  to  the  boundary  at  La  Quiaca,  where  it  will  meet  the 
Northern  Central  of  Argentine  (Government)  Ry.,  extending  to  Tucuman, 
where  connection  is  afforded  with  the  Central  Argentine  and  Cordoba  Central 
Systems  to  Buenos  Ayres.  The  Antofagasta  &  Bolivia's  new  line  into  La  Paz 
is  being  surveyed  northward  to  Yungas  (125  miles). 

There  is  another  small  railway  in  Bolivia  20j/£  miles  long,  running  from 
Uyani  to  the  Huanchaca  Silver  Mines,  located  at  Pulacaya  (population 
8,000)  and  worked  by  the  Franco-Chilian  Co. 

A  considerable  additional  mileage  of  railways  is  to  be  built  in  the  Republic 
through  a  subsidiary  of  the  Brazil  Ry.  (controlled  by  the  Farquhar-Pearson 
Syndicate),  known  as  the  Bolivian  Development  &  Colonization  Co.,  which 
is  incorporated  in  the  United  States  with  a  capital  of  $15,000,000.  The  com- 

35 


THE     RAILWAYS    OF     SOUTH 

pany  has  obtained  from  the  Bolivian  Government  a  concession  for  the  con- 
struction of  the  following  railways:  (a)  From  La  Paz  to  Puerto  Brais  or 
other  point  on  the  River  Beni  in  the  neighborhood  of  Puerto  Brais  which  may 
appear  more  suitable,  to  form  in  connection  with  that  river,  the  Madeira- 
Mamore  Ry.  and  the  Madeira  River  a  through  route  to  the  navigable  portion 
of  the  Amazon  River;  (b)  from  Santa  Cruz,  or  other  suitable  point  on  the 
Puerto  Rojas  line,  to  Puerto  Suarez  or  other  point  on  the  River  Paraguay 
which  may  be  found  more  adaptable  for  the  purposes  of  building  a  port; 
(c)  from  Potosi  to  Sucre,  with  extension  to  Lagunillas  or  to  other  point  between 
Abapo   and    Villa    Montes. 

The  necessary  funds  for  the  construction  and  equipment  of  the  railways 
and  ports  are  to  be  obtained  by  the  issue  of  bonds  subject  to  the  following 
•conditions:  For  each  £45,000  ($219,000)  expended  the  company  will  issue 
£50,000  ($243,325)  of  bonds  at  5%,  this  interest  being  guaranteed  by  the 
Bolivian  Government,  which  is  liberally  aiding  all  railway  projects.  This  ' 
guaranty  remains  in  force  for  a  term  of  20  years  from  the  date  of  opening 
to  traffic.  The  deposit  required  by  law  to  be  paid  by  the  concessionaire  was 
fixed  at  £80,000  ($389,320).  Although  it  was  stipulated  in  the  concession 
that  the  survey  work,  etc.,  on  these  lines  should  commence  within  six  months 
from  the  date  of  the  signing  of  the  contract,  the  company  obtained  a  year's 
postponement  of  all  the  periods  named  in  the  concession  in  view  of  the  strin- 
gency of  the  European  money  markets,  and  also  permission  to  defer  payment 
of  £60,000  ($292,000)  of  the  deposit.  The  syndicate  also  acquired  a  con- 
trolling interest  in  the  Antofagasta-Bolivia  Ry.  (control  since  said  to  have 
been  relinquished)  and  in  the  company  which  possesses  the  concession  for 
the  line  from  Santa  Cruz  to  Yacuiba. 

The  trade  routes  to  the  Pacific  Ocean  are  described  in  an  earlier  paragraph; 
to  reach  the  Atlantic  seaboard  under  present  conditions  two  routes  exist: 
(1)  La  Paz  to  Uyani  by  rail,  thence  to  the  border  of  Argentine  at  La  Quiaca 
by  coach  or  horseback,  thence  to  Buenos  Ayres  by  rail;  (2)  by  mule  from 
La  Paz  to  the  Beni  River,  thence  by  water  to  a  connection  with  the  Madeira- 
Mamore  Ry.,  extending  around  the  rapids  to  the  navigable  part  of  the  Ma- 
deira River  at  Port  San  Antonio,  where  steamers  may  be  taken  to  the 
Amazon    ports   of   Manaos    and    Para. 

At  the  end  of  1912  there  were  in  operation  in  this  Mountain  Republic  only 
about  797  miles  of  railway.  An  additional  380  miles  were  being  built  while 
about  1,800  miles  were  projected.  Bolivia,  in  area  708,195  square  miles, 
equal  to  over  14  times  the  size  of  New  York  State  or  2%  times  the  size  of 
Texas,  has  a  population  of  only  about  2,300,000.  The  country  has  wonderful 
mineral  resources,  there  being  a  vast  developed  and  undeveloped  wealth 
of  copper  and  tin,  while  silver  has  been  mined  for  centuries. 

Summarized,  Bolivia's  mineral  exports  for  1911  and  1912  have  been  as 
follows: 

Products  1911  1912  Products        1911                   1912 

Antimonv $26,615  $1,994         Tin $20,476,806     $23,289,732 

Bismuth 819,297  784,183  Wolfram..             89,932             114,847 

Copper 555,080  1,311,156          Zinc 144,899             129,243 

Gold 22,313  23,039 

Silver 1,784,633  1,676,704  Total..    $23,919,575     $27,330,898 

The  total  exports  of  the  nation  for  1912  were  valued  at  upwards  of  $36,- 
000,000;  the  imports  for  1911  (latest  figures  available)  were  valued  at 
$23,268,562. 

See  Madeira-Mamore  Ry.  under  Brazil. 

36 


AND     CENTRAL     AMERICA 

Chili. 

Chili,  one  of  the  most  progressive  of  the  American  Republics,  has  an  area  of 
292,100  square  miles  and  a  population  of  nearly  4,000,000.  It  extends  from 
17°  15'  to  60°  south  latitude,  covering  a  total  of  nearly  43°,  its  coast  line 
totalling  2,625  miles.  In  other  words  its  length  would  equal  the  distance  from 
Newfoundland  to  Venezuela,  or  from  Quebec  to  Liverpool.  Its  width  varies 
from  100  to  250  miles,  averaging  about  112  miles.  The  country  produces 
a  wealth  of  minerals,  among  which  nitrate  stands  first.  The  Republic  leads 
the  world  in  the  production  of  this  mineral  and  produces  the  sixth  largest 
amount  of  copper,  also  considerable  quantities  of  gold,  silver,  iron,  borate  of 
lime,  iodine,  etc. 

On  January  1,  1913,  3,800  miles  of  railways  were  in  operation  in  the  Republic, 
this  including  1,860  miles  of  privately  owned  lines  (mostly  controlled  by  the 
British)  and  about  1,940  miles  owned  by  the  Government. 

In  the  pages  to  follow  directly  or  elsewhere,  will  be  found  descriptions  of 
three  important  railways  which  are  operated  independently  of  Government 
control,  these  three  lines  being,  the  Antofagasta  (Chili)  &  Bolivia  Ry.  (see 
Chapter  on  Bolivia);  the  Nitrate  Rys.  and  the  Chilian  Transandine  Ry.  The 
first  named  company  extends  from  the  Ports  of  Antofagasta,  and  Mejillones 
to  Oruro  and  La  Paz  with  branches,  obout  one-half  of  its  769  miles  being  in 
this  republic.  This  railway,  a  portion  of  which  is  to  be  double,-tracked  and  the 
Nitrate  Rys.,  extend  through  the  extensive  nitrate  fields  of  Chili.  The  latter 
line  has  its  principal  port  at  Iquique. 

Among  the  railways  privately  owned  which  are  not  described  in  this  book, 
may  be  mentioned  the  Arica  &  Tacna  Ry.  the  Anglo  Chilian  Ry.,  the  Aranco 
Ry.,  the  Aguas  Blancas  Ry.    The  Braden  Copper  Co's.  Ry.,  the  Taltal  Ry.,  etc. 

The  Arica  &  Tacna  Ry.  is  the  most  northerly  line  in  Chili.  It  runs  from  the 
Port  of  Arica  (the  terminus  of  the  Arica-La  Paz  Ry.)  in  a  northerly  direction 
for  about  47  miles  to  Tacna,  capital  of  the  province  of  that  name.  It  was  the 
original  intention  of  the  owners  of  this  railway  to  push  on  from  Tacna  to  La 
Paz,  Bolivia,  but  the  construction  recently  of  the  Arica-La  Paz  Ry.  has 
eliminated  the  possibilities  of  carrying  out  this  plan.  The  stock  of  this  com- 
pany is  held  in  Great  Britain  and  nominal  dividends  are  paid  regularly. 

The  Taltal  Ry.  runs  inland  from  the  port  with  a  similar  name  to  Artruro 
Prat  and  other  places  in  the  nitrate  district.  £180,000  stock  (on  which  9%  is 
paid)  and  £242,100,  4j^%  Debentures  are  listed  on  the  London  Stock 
Exchange. 

The  Aranco  Co.'s  railway,  which  was  incorporated  in  1884,  is  about  65 
miles  in  length  and  extends  from  Concepcion  to  Curanilahue,  with  branches 
to  Aranco,  etc.  The  railways  cost  upwards  of  $3,500,000.  The  company  has 
listed  on  the  London  Stock  Exchange  £477,800  Stock  on  which  a  dividend  of 
10%  was  recently  paid,  together  with  £578,509  Debenture  Stock.  The  Gross 
Receipts  of  the  railway  for  1913  were  upwards  of  £108,000. 

The  Aguas  Blancas  Ry.  also  operates  into  the  nitrate  fields.  It  is  controlled 
by  the  Antofagasta  (Chili)  &  Bolivia  Ry.,  through  ownership  of  a  majority 
of  its  £900,000^  stock. 

The  Braden  Copper  Co.'s  railway  is  upwards  of  44  miles  in  length  and  ex- 
tends from  Rancagua  on  the  Chilian  State  Rys.  to  the  various  mines  and 
smelters  of  the  companv. 

37 


THE     RAILWAYS    OF    SOUTH 

The  Government  is  carrying  out  an  extensive  railway  programme  and  is 
expending  millions  annually  on  its  lines  ($19,400,000  in  1912).  Using  Val- 
paraiso as  an  operating  base'the  so-called  "Longitudinal  System"  is  completed, 
building  or  projected  to  Arica  in  the  far  north  and  Puerto  Montt  on  the  Cor- 
covado  Gulf  some  800  miles  to  the  south.  This  latter  section  has  already 
been  completed  while  the  northern  portion  of  the  line  has  been  completed  to  a 
point  near  Iquique.  The  total  system  when  completed  will  be  2,132  miles 
in  length,  there  are  also  cross  lines,  including  the  important  one  running  from 
Valparaiso  to  Los  Andes,  where  it  meets  the  Chilian  Transandine  Ry.  which 
joins  the  Argentine  Transandine  Ry.  at  the  heart  of  the  Andes,  forming  with 
connections  a  through  route  from  Valparaiso  to  Buenos  Ayres.  About  500 
miles  of  branch  lines  were  surveyed  or  building  in  1913. 

The  Government  also  owns  the  Arica-La  Paz  Ry.  which  was  completed  in 
1913  between  the  port  of  Arica  and  La  Paz  the  capital  of  Bolivia.  This  rail- 
way was  built  by  an  English  firm  Sir  John  Jackson  (Chili)  Inc.,  and  was  an 
extremely  costly  enterprise.  It  shortens  the  running  time  by  many  hours  be- 
tween the  capital  of  Bolivia  and  the  sea. 

The  Government  recently  purchased  the  Copiapo  Ry.,  running  into  ex- 
tensive coal  fields  and  contemplate  the  building  of  two  additional  transcon- 
tinental lines  including  one  to  Paso  Pino  Hachedo  where  it  will  meet  the 
Buenos  Ayres  Gt.  Southern  Ry.  Other  lines  are  also  projected.  12,187,807 
passengers  were  carried  in  1912  by  the  State  Railways. 

The  highest  altitude  reached  by  any  of  the  Chilian  railwys  is  15,809  feet, 
this  point  being  Collahuasi  on  a  branch  of  the  Antofagasta  (Chili)  &  Bolivia 
Ry.  Extensive  copper  mines  are  located  at  this  place. 

Chili's  foreign  commerce  for  1912  totalled  $261,954,195,  of  which  $139,878,- 
201  represented  export  and  $122,075,994  imports. 

Nitrate  is  the  principal  export;  Iquique  on  the  Nitrate  Rys.  and  Antofa- 
gasta and  Mejillones  on  the  Antofagasta  (Chili)  &  Bolivia  Ry.  are  the  principal 
shipping  points  for  this  commodity.  Copper,  borate  of  lime,  iodine,  wheat, 
wool,  etc.,  are  sent  abroad  in  large  quantities. 

The  completion  of  the  Panama  Canal  will  mean  much  to  this  Republic 
which  has  not  been  slow  to  grasp  the  fact  and  is  making  every  preparation  for 
the  expected  increase  in  trade.  About  $13,000,000  is  being  expended  on  ex- 
tensive port  works  at  Valparaiso,  while  upwards  of  $20,000,000  it  is  expected 
will  be  spent  on  the  more  northerly  ports  such  as  Antofagasta,  Tocopillo, 
Iquique,  Patillos,  Pisagua,  etc.  A  vast  amount  of  American  Capital  is  being 
invested  in  Chili,  principally  in  its  mines,  and  more  is  to  follow.  Santiago,  the 
nation's  capital,  has  now  taken  the  lead  among  the  cities  of  the  West  Coast 
Countries,  its  population  exceeding  400,000.  Valparaiso  has  a  population  of 
250,000. 

Chili's  outlook  may  be  said  to  be  generally  bright  indeed. 


38 


AND     CENTRAL     AMERICA 
Antofagasta  (Chili)  &  Bolivia  Ry. 

Avg.  Miles  Avg.  Miles 

Year        Oper.  Gross  Receipts  Year        Oper.  Gross  Receipts 

1911  $7,584,433       £1,516,885      |      1912         *769        t$8,319,179     t$l,663,935 

*794  miles,  December  31,  1913. 

fGross  Receipts  for  1913  were  approximately  $9,800,000  (£1,860,000). 

Stock  Outstanding  Bonds  Outstanding 

December  31,  1912  December  31,  1912 


Deferred  Ordinary $10,000,000 

♦Preferred  Ordinary  (5%)..        10,000,000 
tPreference  (5%) 10,000,000 


Debenture  Stock   (4%) $5,000,000 

Debenture  Stock  (4J^%) 5,000,000 

^Debenture  Stock  (5%) 10,500,000 


♦Shares  with  Deferred  Ordinary  in  all  dividends  over  10%  per  annum. 
"(■Cumulative. 

^Includes  $3,000,000  (£600,000)  Bolivia  Debenture  Stock,  redeemable  in  1960  at  110 
and  secured  by  £729,065  5%  Bolivia  Ry.  Bonds  guaranteed  by  the  Government  of  Bolivia. 

Capitalization 

Total Per  Mile 

Stock £6,000,000          $30,000,000  $39,012 

Bonds 4,100,000            20,500,000  26,658 

Total 10,100,000           50,500,000  65,670 

Fixed  Charges  below  include  $151,705  (£30,341)  account  of  Income  Tax. 
Gross  Receipts  below  include  $677,210  (£135,442)  Mole  Receipts,  Operating  Expenses 
(General  Expenses)  below  include  $422,920  (£84,584)  Mole  Expenses. 

Income  Account  Year  Ending  December  31,  1912 

Average  miles  operated,  769. 

Total Per  Mile 

Gross  Receipts £1,663,836           $8,319,180  $10,818 

Operating  Expenses 945,490             4,727,450  6,147 

Net  Receipts 718,346             3,591,730  4,671 

Other  Income 144,658                723,290  941 

Total  Net  Income 863,004             4,315,020  5,612 

Fixed  Charges 220,341             1,101,705  1,433 

♦Surplus 642,663             3,213,315    .  4,179 

Operating  Expenses 

Maintenance  of  Way £218,387  $1,091,935  $1,420 

Maintenance  of  Equipment 166,810  834,050  1,085 

Traffic  and  Transportation  Expenses 373,816  1,869,080  2,430 

General  and  Mole  Expenses 186,477  932,385  1,212 

Ratio  of  Operating  Expenses  to  Operating  Revenues,  56.8  per  cent. 

♦This  Surplus  before  deducting  $1,000,000  (£200,000)  appropriated  to  Reserve  Account, 
$39,125  (£7,825)  to  Insurance  Fund  and  $300,000  (£60,000)  appropriation  towards  cost  of 
Installation  of  Brakes  and  Automatic  Couplers. 

Other  Income  above  includes  $278,715  (£55,743)  Net  Receipts  from  Waterworks.  Gross 
Receipts  were  $436,320  (£87,264)  and  Expenses  were  $157,600  (£31,520).  In  1911,  Net 
Receipts  were  £43,478. 

Appropriation  of  Gross  Income 

1912 

For  Maintenance  Expenses 21.3% 

For  Traffic,  Transportation  and  General  Expenses 31.0% 

For  Fixed  Charges 12.2% 

For  Surplus 35.5% 

100.0% 

NOTES. 

The  Preference  Stock  of  this  company  is  entitled  to  and  receives  dividends 
of  5%  per  annum.  Dividends  are  cumulative.  The  Preferred  Ordinary 
Stock  is  entitled  to  dividends  of  5%  per  annum,  non-cumulative,  in  priority 
to  the  Deferred  Ordinary  Stock.  After  the  Deferred  Ordinary  Stock  receives 
10%  both  issues  share  alike  in  all  further  distribution  of  profits.    $10,000,000 

39 


THE     RAILWAYS     OF     SOUTH 

of  each  of  these  three  classes  of  stock  has  been  issued  and  are  outstanding. 
8}^%  was  paid  from  the  surplus  of  1912  on  the  Deferred  Ordinary  Stock, 
against  8%  in  1911. 

The  4j/2%  Perpetual  Debenture  Stock  is  secured  by  a  first  charge  on  the 
property,  ranking  prior  to  the  4^%  and  5%  Debenture  Stock.  These  latter 
Debenture  Stocks  are  redeemable  in  1940  at  105  and  110  respectively.  $5,000,- 
000,  $5,000,000  and  $7,500,000  respectively  of  these  classes  of  Debenture 
Stocks  were  outstanding  December  31,  1912.  On  that  date  $3,000,000 
(£600,000  ]5%  (Bolivia)  Debenture  Stock,  redeemable  in  1960  at  110,  was 
also  outstanding,  being  secured  by  £729,065  bonds  of  the  Bolivia  Ry.  guaran- 
teed by  the  Government  of  Bolivia. 

The  balance  sheet  of  the  company  as  of  December  31,  1912,  showed  a  sub- 
stantial margin  of  Cash  and  Current  Assets,  Stores,  etc.,  over  Current  and 
Accrued  Liabilities.  There  were  large  amounts  to  the  credit  of  various 
Reserve  Accounts. 

This  railway  operates  in  the  two  Republics  of  Chili  and  Bolivia.  The 
tidewater  terminals  are  at  Antofagasta  on  Morena  Bay,  (Pacific  Ocean), 
a  port  from  which  a  large  quantity  of  nitrate  is  shipped,  and  also  at  Mejillones. 
The  railway  extends  through  the  vast  nitrate  fields  of  Chili  into  Bolivia,  which 
latter  country  is  entered  at  an  altitude  of  12,000  feet.  At  Uyani  (Bolivia), 
about  379  miles  from  Antofagasta,  the  great  silver  district  of  Huanchaca  is 
reached.  From  Uyani  the  railway  continues  to  Oruro,  where  connection  is 
made  with  the  Bolivia  Ry.,  a  leased  line  (see  following).  This  latter  line  is 
used  between  Oruro  and  Viachi.  From  Viachi  the  Antofagasta  &  Bolivia 
Ry.  proper  was,  in  1913,  constructing  a  line  to  La  Paz,  the  principal  city  of 
Bolivia.  The  mileage  between  Antofagasta  and  Uyani  is  of  2  ft.  6  in.  gauge 
which  is  to  be  broadened  to  the  metre  gauge,  conforming  with  the  standard 
adopted  by  connecting  lines. 

The  Antofagasta  &  Bolivia  Ry.  expended,  prior  to  December  31,  1912,  the 
sum  of  $8,229,988,  (£1,645,997.  12s.),  for  the  acquisition  of  the  common 
stock  and  one-half  of  the  First  Mortgage  5%  bonds  of  the  Bolivia  Ry.  The 
Bolivia  Ry.  bonds  are  all  guaranteed  as  to  interest  by  the  Government  of 
Bolivia.  The  First  Mortgage  5%  bonds  not  owned  by  the  Antofagasta  & 
Bolivia  Ry.  bear  the  guarantee  of  this  company  and  also  of  the  Bolivian 
Government.     (See    Bolivia    Ry.). 

The  principal  commodities  handled  by  the  Antofagasta  &  Bolivia  Ry.  in 
1912  were  nicrate  and  nitrate  earth,  873,212  tons;  borate  43,855  tons;  silver 
ore,  79,889  tons;  tin  ore,  (from  Bolivia),  39,958  tons;  coal,  255,856  tons; 
petroleum,  30,805  tons;  etc. 

In  the  year  1911  one  of  the  subsidiaries  of  the  Brazil  Ry.  Co.  acquired  con- 
trol of  this  line.  This  subsidiary,  the  Bolivia  Development  &  Colonization 
Co.,  has  projected  a  line  from  La  Paz,  Bolivia,  down  the  eastern  slope  of  the 
Andes  to  the  Beni  River.  The  building  of  this  line  will  establish  communica- 
tions between  the  country  adjacent  to  the  Antofagasta  &  Bolivia  Ry.  and 
Eastern  Bolivia,  and  will  afford  connections  (via  rail  and  water)  with  the 
Madeira-Mamore  Ry.  and  the  Amazon. 

Early  in  1914,  the  Brazil  Ry.  interests  sold  their  holdings  in  Antofagasta 
stock  to  Messrs.  J.  H.  Shroeder  &  Co.  of  London. 

40 


AND     CENTRAL     AMERICA 

Bolivia  Ry. 

(Leased  by  the  Antofagasta  &  Bolivia  Railway.) 

This  company  was  incorporated  in  the  United  States  in  1907,  and  holds  a 
perpetual  concession  from  the  Republic  of  Bolivia  for  the  construction  of 
lines  of  railway  in  that  Republic, — in  all  about  773  miles.  This  mileage 
includes  a  line  from  Oruro,  the  northern  terminal  of  the  Antofagasta  &  Bolivia 
Ry.  (see  that  company),  to  Viachi  (126  miles),  from  which  latter  point  the 
A.  &  B.  Ry.  is  building  a  line  to  La  Paz,  the  principal  city  of  Bolivia  (19  miles). 
$6,037,332  has  been  expended  on  the  Oruro-Viachi  line  to  December  31,  1912. 
The  Bolivia  Ry.  is  also  building,  or  has  projected,  lines  as  follows:  (1)  from 
Oruro  to  Cochabamba  (132  miles)  on  which  $8,024,312  had  been  expended 
to  December  31,  1912;  (2)  from  Rio-Mulato  to  Potasi  (106  miles),  on  which 
$7,254,048  had  been  expended  to  December  31,  1912;  (3)  from  Uyuni  (on  the 
A.  &.  B.  Ry.)  to  Tupiza;  (4)  from  La  Paz  to  Puerto  Pando;  (5)  from  Potasi  to 
Sucre,  (the  Capital),  etc.  These  various  lines,  when  completed,  will  give  a 
comprehensive  railway  system  to  Bolivia,  and  will  greatly  aid  in  opening  up 
the  vast  resources  of  that  Republic. 

Under  the  concession  granted  to  the  Bolivia  Ry.  by  the  Government  the 
company  may  import  all  materials,  equipment,  etc.,  free  from  all  duty  for  a 
period  of  thirty  years,  and  furthermore  the  company  is  relieved  from  the 
payment  of  all  taxes.  The  Republic  of  Bolivia  purchases  at  par  (as  issued) 
Second  Mortgage  Income  bonds,  up  to  £2,500,000,  at  the  rate  of  £20,000 
Income  bonds  for  every  £55,000  expended  on  the  line  up  to  £5,500,000.  The 
Government  guarantees  that  it  will  make  up  any  deficiency  in  interest  on  the 
First  Mortgage  bonds.  The  amount  required  to  make  up  this  deficiency 
was  is  1911,  $365,561,  and  in  1912,  $566,835. 

A  controlling  interest  in  the  stock  of  this  company  is  owned  by  the  Anto- 
fagasta (Chili)  &  Bolivia  Ry.,  which  company  leases  the  property.  Under 
terms  of  the  lease  the  lessee  agrees  to  purchase  one-half  of  the  Bolivia  Ry.'s 
First  Mortgage  5%  bonds  (due  1927)  as  issued,  and  agrees  to  pay  to  that 
company  25%  of  the  lessor's  Gross  Income  from  January  1,  1909  to  January  1, 
1914;  30%  from  1914  to  1919;  35%  from  1919  to  1924,  and  40%  thereafter. 
The  Gross  Earnings  for  1912  (Viachi-Oruro  line, —  only  mileage  in  operation) 
amounted  to  $301,948,  as  against  $288,368  in  1911.  On  December  31,  1912, 
$10,000,000  stock,  $15,332,328  First  Mortgage  5%  bonds,  and  $10,221,552 
Second  Mortgage  bonds  were  outstanding.  The  First  Mortgage  bonds  are 
listed  on  the  New  York  Stock  Exchange. 

As  of  December  31,  1912,  Working  Assets,  (including  $1,081,191  Material 
and  Supplies),  amounted  to  $2,560,798  as  against  Working  Liabilities  to  the 
amount  of  $580,550.  There  is  a  contingent  liability  to  the  Bolivian  Govern- 
ment for  interest  advances, — such  amounts  being  repayable  out  of  surplus 
profits. 

The  Bolivia  Ry.  owned  on  December  31,  1912,  10  locomotives  (including 
8  American  Consolidation  locomotives),  29  passenger  cars,  and  323  freight 
and    service    cars. 


41 


THE     RAILWAYS     OF     SOUTH 
Guaqui-La-Paz  Ry. 

Bolivia. 

This  railway,  which  is  controlled  by  the  Peruvian  Corporation  (see  de- 
scription of  latter  in  chapter  on  Peru)  extends  from  Guaqui,  on  the  Bolivian 
shores  of  Lake  Titicaca,  to  La  Paz  (59  miles)  etc.  At  Guaqui  connection  is 
afforded  with  the  line  of  steamers,  run  by  the  Peruvian  Corporation,  which 
cross  the  lake  to  Puno,  on  the  Peruvian  shore,  where  a  branch  of  the  Southern 
Ry.  of  Peru  extends  to  Juliaca,  to  meet  the  main  line  running  to  the  Port  of 
Mollendo.  Arrangements  have  been  completed  reducing  the  through  time 
between  La  Paz  and  Callao  via  this  railway,  Lake  Titicaca,  the  Southern  Ry. 
of  Peru  and  the  Pacific  Steam  Navigation  Co.,  to  fifty-seven  hours. 

Prior  to  1910  when  it  was  sold  to  the  Peruvian  Corporation  this  railway 
was  the  property  of  the  Bolivian  Government.  A  portion  of  it  has  been  used 
for  several  years  by  the  Antofagasta  (Chili)  &  Bolivia  Ry.  to  afford  it  an 
entrance  into  La  Paz,  but  in  1913  the  latter  railway  had  practically  completed 
a  line  of  its  own  to  the  capital. 

The  earnings  of  the  Guaqui-La  Paz  Ry.  for  1912-13  and  1911-12  were  as 
follows: 

1912-13 1911-12 

Gross  Receipts £87,921     $439,605  £64,381     $321,905 

Working  Expenses...        49,570       247,850  36,880       184,400 


Net  Receipts £38,351     $181,755  £27,501     $137,505 

The  Gross  Receipts  per  mile  for  1912-13  were  approximately  $7,457  as 
against  approximately  $5,456  for  1911-12. 

The  entire  Net  Receipts  for  1912-13  (£38,351)  were  paid  to  the  Peruvian 
Corporation,  the  latter  to  June  30,  1913,  having  expended  £371,938  ($1,859,- 
690)  in  purchasing  and  improving  the  property. 

See  under  Peru:  the  Peruvian  Corporation,  Southern  Ry.  of  Peru. 


42 


AND     CENTRAL    AMERICA 
Chilian  Transandine  Rys. 

(Ferro  Carrel  Transandino) 

Year  Average  Miles  Operated  Gross 

*1911-12  t43  J$431,400  J  £86,280 

♦Latest  report  rendered;  published  June  17.  1913.  fEstimated.  ^Traffic  was  completely 
interrupted  for  several  weeks  owing  to  severe  avalanches  in  the  Andes,  this  caused  a  con- 
siderable loss  in  Revenues. 

Stock  Outstanding  Bonds  Outstanding 

June  30,  1912  June  30,  1912 

Ordinary  $500,000  *Debenture  Bonds $7,425,000 

Preferred 7.000,000        !        Equipment 

♦Series  "A,"  £278,100;     Series  "B,"  £538,650;  Series  "C,"   £668,250. 

Capitalization 

Total Per  Mile 

Stock £1,500,000          $7,500,000  $174,419 

Bonds                     1,485,000            7,425,000  172,674 

Total 2,985.000          14,925,000  347,093 

Fixed  Charges  below  represent  interest  on  above  bonds.  This  interest  was  advanced 
by  the  Government  and  is  repayable  under  certain  conditions  (see  Notes). 

Income  Account  Year  ending  June  30,  1912 

Average  miles  operated,  43   (approximately). 

Total Per  Mile 

Gross  Receipts £86,280  $431,400  $10,033 

Operating  Expenses 74,172  370,860  8,625 

Net  Receipts 12,108  60,540  1,408 

Other  Income 74,250  371,250  8,634 

Total  Net  Income 86,358  431,790  10,042 

Fixed  Charges 74,250  371,250  8,634 

♦Surplus 12,108  60,540  1,408 

Operating  Expenses 

Total Per  Mile 

Maintenance  of  Way £20,962            $104,810  $2,437 

Maintenance  of  Equipment 14,396                 71,980  1,674 

Traffic  and  Transportation  Expenses 25,231               126,155  2,934 

General  Expenses 13,583                 67,915  1,580 

Ratio  of  Operating  Expenses  to  Gross  Receipts  86.0  per  cent. 

♦To  this  Surplus  was  added  $7,895  (£1,579)  brought  forward  at  July  1,  1911,  making 
Total  $68,435  (£13,687).  From  this  Total  there  was  deducted  $67,670  (£13,534)  Net 
Loss  on  Working  of  the  First  and  Second  Sections  prior  to  July  1,  1908,  less  Profit  on 
Working  of  the  Third  Section  prior  to  May  1,  1910,  credited  to  Transandine  Construction 
Co.  L't'd.   (See  Notes). 

The  Other  Income  above  represents  advances  for  interest  guaranteed  by  the  Govern- 
ment of  Chili. 

Appropriation  of  Gross  Income 

1911-12 

For  Maintenance  Expenses 22  . 0  % 

For  Traffic,  Transportation  and  General  Expenses 24 . 1  % 

For  Fixed  Charges 46 . 3  % 

For  Surplus 7.6% 

100  0% 

NOTES. 

The  Chilian  Transandine  Ry.  forms  a  part  of  South  America's  famous 
Ocean-to-Ocean  route.  The  line  is  of  metre  gauge  and  extends  from  Los  Andes, 
the  terminus  of  the  Chilian  National  (Government)  Ry.  line  from  Valparaiso, 
to  the  Argentine  frontier.  The  construction  of  the  line  involved  tremendous 
difficulties.  From  Los  Andes  to  the  tunnel  (about  43  miles)  there  is  a  rise  of 
8,000  feet,  the  last  7  miles  necessitating  a  climb  of  over  3,100  feet.  Heavy- 
grades  reaching  a  maximum  of  about  8%  are  to  be  found  necessitating  the  use 

43 


THE     RAILWAYS    OF     SOUTH 

of  the  rack  system  in  various  places,  and  making  unavoidable  many  zigzag 
curves.  At  one  point  as  the  line  follows  the  mountain  side  above  the  winding 
Aconcagua  River,  it  enters  a  tunnel  through  a  spur,  and  then  emerges  on  the 
opposite  side  on  the  brink  of  a  chasm — the  Soldier's  Leap,  which  is  a  narrow 
wedge-shaped  fissure  in  the  rock.  A  bridge  carries  the  line  over  the  stream, 
at  a  height  of  fully  200  feet,  to  a  narrow  ledge  which  is  blasted  out  of  the 
opposite  cliff-face.  The  heavy  gradients  and  numerous  curves  encountered 
naturally  reduce  the  freight-carrying  capacity  of  trains;  compels  high  oper- 
ating costs  and  renders  only  low  speed  possible.  The  time  taken  to  make  the 
trip  from  Valparaiso  to  Buenos  Ayres  is  about  forty  hours  as  against  about 
eleven  days  via  the  Magellan  Strait. 

The  company  has  been  compelled  to  call  to  its  aid  the  Government  of 
Chili,  in  an  endeavor  to  put  the  line  in  condition  to  enable  it  to  be  worked 
efficiently  and  economically  all  the  year  round.  The  heavy  snow  storms  in  the 
mountains  have  made  traffic  in  the  winter  months  almost  impossible.  From 
May  to  October,  1912,  the  line  was  out  of  commission  for  through  traffic,  while 
frequent  delays  have  been  unavoidable  owing  to  several  washouts  on  the 
lower  sections  of  the  line. 

The  entire  outstanding  bonded  debt  consisting  of  £278,100  Series  "A," 
£538,650  Series  "B"  and  £668,250  Series  "C"  Debenture  bonds,  is  guaranteed 
by  the  Government  for  20  years  from  the  completion  of  each  section.  Section 
one  was  completed  June  30,  1900;  Section  two,  April  7,  1908,  and  Section 
three  May  1,  1911.  The  bonds  are  repayable  1960.  Net  earnings  up  to  5% 
on  the  outstanding  debt  are  to  go  to  the  Government  in  repayment  for  guar- 
antees. Earnings  above  5%  and  up  to  8%  go  to  the  company.  All  earnings 
over  8%  go  to  the  Government  to  reimburse  it  for  interest  advances, 
until  all  such  advances  are  repaid.  The  company  agrees  to  set  aside  annually 
(when  earned)  before  payment  of  any  dividends  or  appropriation  of  any  re- 
serves £30,000  to  redeem  debentures  until  the  total  outstanding  amount  is 
reduced  to  £1,000,000.  The  authorized  amount  of  Debenture  bonds  is  £l,- 
500,000. 

No  dividends  have  been  paid  on  the  company's  stock. 

See  under  Argentine  Republic:  Buenos  Ayres  &  Pacific  Ry.;  Argentine 
Great  Western  Ry.;  Argentine  Transandine  Ry. 


44 


AND     CENTRAL     AMERICA 
Nitrate  Rys. 

Year  Avg.  Miles  Oper.  Gross  Receipts 

1912  *377  $3,426,630  £685,326 

*The  actual  mileage  of  main  track  operated  in  less  than  the  amount  here  stated.  This 
mileage  includes  that  of  spurs  and  sidings.  The  statistics  of  main  track  were  not  available, 
therefore  the  "per  mile  statistics"  as  given  below  are  less  than  the  actual  figures. 

Stock  Outstanding  Bonds  Outstanding 

December  31,  1912  December  31,  1912 

Ordinary $7,414,450  Fixed  Interest $2,992,000 

*Preferred  (7%) 865,550 

tDeferred 865,550 

*Styled   "Preferred   Converted   Ordinary." 
tStyle  "Deferred  Converted  Ordinary." 

Capitalization 

Total Per    Mile 

Stock £1,829,110          $9,145,550  $24,259 

Bonds 598,400            2,992,000  7,936 

Total 2,427,510          12,137,550  32,195 

Fixed  Charges  below  include  $989,925  (£197,985)  paid  account  of  Sinking  Fund  and 
$40,120  (£8,024)  Income  Tax. 

Income  Account  Year  Ending  December  31,  1912 

Average  miles  operated,  377. 

■ Total Per  Mile 

Gross  Receipts £685,326  $3,426,630  $9,089 

Operating  Expenses 336,068  1,680,340  4,457 

Net  Receipts 349,258  1,746,290  4,632 

Other  Income 6,333  31,665  84 

Total  Net  Income 355,591  1,777,955  4,716 

Fixed  Charges 245,690  1,228,450  3,258 

*Surplus 109,901  549,505  1,458 

Operating  Expenses 

Maintenance  of  Ways £36,521  $182,605  $484 

Locomotive  Expenses 216,584  1,082,920  2,873 

Traffic  and  Telegraph  Expenses 45,916  229,580  609 

General  Expenses  and  Exchange  Account 37,047  185,235  491 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  49.0  per  cent. 

*This  Surplus  before  deducting  $22,500  (£4,500)  for  Depreciation  of  Investment,  $45,805 
(£9,161)  Expenditures  on  New  Sidings  and  Buildings  during  1912  and  $150,000  (£30,000) 
Renewal  of  Rolling  Stock  Account. 

Appropriation  of  Gross  Income 

1912 

For  Maintenance  of  Way  and  Locomotive  Expenses 36.6% 

For  Traffic,  Transportation  and  General  Expenses 12.0% 

For  Fixed  Charges 35.5% 

For  Surplus 15.9% 


NOTES 


100.07c 


This  company  operates  about  377  miles  of  railway  in  the  State  of  Tarapaca, 
Chili.  The  line  passes  through  large  portions  of  the  great  nitrate  region  of 
Northern  Chili  and  is  composed  of  one  main  stem  and  a  considerable  number 
of  branches  and  spurs  to  various  nitrate  beds,  etc.  The  tidewater  terminals 
of  the  Nitrate  Rys.  are  at  Iquique  and  Pisagua,  from  which  two  ports  about 
28%  of  the  nitrate  of  soda  exported  by  Chili  is  shipped.  All  of  the  nitrate 
exported  from  these  two  ports  was  carried  to  tidewater  by  the  Nitrate  Rys. 
The  earnings  from  traffic  in  this  commodity  were  for  1912  £349,528.  The 
railway  also  handles  a  large  quantity  of  coal. 

45 


THE     RAILWAYS     OF     SOUTH 

The  Nitrate  Rys.  paid  in  dividends  from  the  surplus  for  1912:  7}^%  on 
the  Ordinary  Unconverted  Shares;  7%  on  the  Preferred  Converted  Shares,  and 
J-^%  on  tne  Deferred  Converted   Shares. 

The  company  had  outstanding  December,  1912,  £598,400  5%  Mortgage 
bonds  (amount  since  reduced  by  Sinking  Fund).  The  company  originally 
had  outstanding  £115,800  7%  bonds,  £124,800  6%  bonds  and  £2,000,000 
5%  bonds.  Of  these  bonds  all  excepting  the  £598,400  5%  bonds  above  men- 
tioned, had  been  redeemed  prior  to  December  31,  1912.  A  total  of  £197,985 
was  appropriated  from  the  earnings  of  1912  account  of  Sinking  Fund  and  a 
total  of  £188,800  bonds  were  redeemed  in  1912. 

The  Balance  Sheet  as  of  December  31,  1912,  showed  a  large  excess  of  Cash, 
Bills  Receivable,  Stores,  etc.,  over  Current  Liabilities.  There  were  large 
credits  to  various  Reserve  Accounts  and  the  company  generally  showed 
itself  to  be  in  excellent  financial  condition. 


46 


AND     CENTRAL     AMERICA 


BRAZIL. 


Brazil  ranks  about  twelfth  among  the  nations  of  the  world  in  its  total  of 
railway  mileage,  Argentine  being  the  only  South  American  Republic  surpassing 
it.  The  vast  increase  in  the  trade  of  Brazil  has  stimulated  the  construction 
of  railroads  and  continually  through  this  means  new  sections  of  the  country 
are  being  placed  in  communication  with  the  outer  world.  The  Republic  of 
Brazil  is  the  fourth  largest  country  in  the  world  in  size,  if  we  exclude  Alaska 
from  the  total  area  of  the  United  States;  it  is  about  200,000  square  miles 
greater  in  area  than  the  United  States,  excluding  Alaska,  or  in  other  words 
its  area  would  cover  the  United  States  and  in  addition  would  again  cover  New 
England  and  the  Middle  Atlantic  States.  The  population  is  about  21,000,000, 
of  which  total  1,000,000  are  in  Rio  de  Janeiro,  well  over  300,000  in  Sao  Paulo, 
280,000  in  Bahia,  200,000  in  Para,  200,000  in  Recife  (Pernambuco),  130,000 
in  Porto  Alegre  and  about   100,000  in  Manaos. 

The  rivers  and  the  vast  seaboard  of  the  country  have  somewhat  obviated 
the  necessity  for  extensive  railroad  building.  Brazil  not  only  has  upwards  of 
5,000  miles  of  seacoast  and  the  greatest  river  in  the  world,  the  Amazon,  the 
basin  of  which  covers  about  3,350,000  square  miles,  but  it  has  fully  a  dozen 
rivers  averaging  from  1,000  to  3,000  miles  in  length.  Most  of  these  rivers  are 
tributaries  of  the  Amazon;  10,000  miles  of  river  are  navigable  for  steamers  and 
20,000  miles  additional  navigable  for  flat  boats  and  light  draught  vessels. 

Railway  Extensions 

On  December  31,  1911,  the  railroad  lines  in  actual  operation  aggregated 
13,372  miles,  while  during  1912  there  were  finished  and  turned  over  to  traffic 
472  miles  more.  On  the  Madeira-Mamore  Ry.  the  last  stretch  of  43  miles 
from  Ribeirao  to  Guajara  Mirim  was  finished,  completing  the  construction 
of  this  road  and  throwing  open  to  traffic  a  total  extension  of  218  miles.  On 
the  Tocantins  Ry.,  27  miles  have  been  constructed  and  are  now  ready  for  traffic 
in  the  States  of  Goyaz  and  Bahia,  8  miles  are  under  construction,  and  plans 
for  76  miles  more  have  been  approved. 

Construction  work  on  the  railroad  from  S.  Luiz  to  Caixas,  in  the  State  of 
Maranhao,  the  length  of  which  is  about  182  miles,  is  steadily  progressing. 
Although  the  track  between  Caixas-Codo  and  Rosario-Itapicuru  has  not 
been  turned  over  to  actual  traffic,  the  work  is  far  advanced,  and  this  road  will 
be  in  service  before  the  end  of  1913. 

On  the  South  American  Construction  Co's  railroad  there  are  already  in  use 
454  miles  of  track,  and  there  are  to  be  added  to  this  19  miles  extending  from 
Fortaleza  to  Crato,  in  the  State  of  Ceara,  and  24  miles  from  Camocim,  Ceara, 
to  Therezina,  Piauhy,  and  also  19  miles  from  Fortaleza  to  Itapipoca. 

On  the  Central  Rio  Grande  do  Norte,  in  the  State  bearing  the  same  name, 
construction  is  advancing  steadily,  and  before  the  present  year  is  closed  more 
than  62  miles  will  be  thrown  open  to  actual  traffic. 

Of  an  extension  of  959  miles  of  the  railroad  from  Conde,  State  of  Bahia,  to 

47 


THE     RAILWAYS     OF     SOUTH 

Piauhy,  State  of  Piauhy,  leased  by  the  Great  Western  of  Brazil  Ry.,  the  plans 
for  68  miles  have  already  been  approved. 

The  Bahia  Ry.  system,  operating  in  the  State  of  Bahia,  will  add  to  its  present 
system  of  843  miles  in  actual  use  the  following:  74  miles  of  5.25-foot  gauge; 
579  miles  of  metre  gauge;  190  miles  of  4.567-foot  gauge;  of  these,  there  are  in 
actual  construction  254  miles,  and  plans  have  been  approved  for  1,006  miles. 

Work  on  the  Northwestern  Brazil  Ry.  has  progressed  steadily;  in  1912, 
116  miles  extending  from  Jupia,  State  of  Matto  Grosso,  to  Rio  Verde  were 
completed;  also  167  miles  from  Porto  Esperanca  to  Correntes  in  the  same 
State. 

The  San  Paulo  Rio  Grande  Ry.  now  operates  837  miles,  and  plans  have 
been  approved  for  the  branch  line  from  Gurapava,  State  of  Rio  Grande  do 
Sul.  This  railroad  is  continuing  the  work  on  the  line  from  Sao  Francisco  to 
Uniao,  in  the  State  of  Santa  Catharina. 

The  Rio  Grande  do  Sul  Ry.  comprises  1,303  miles  in  actual  operation  and 
various  construction  work  is  in  progress. 

The  total  mileage  of  railways  in  Brazil,  inclusive  of  that  under  construction 
and  approved,  at  the  end  of  1912,  was  18,721,  or  1,024  miles  more  than  in 
1911. 

Note:  The  above  description  of  the  railway  extensions  is  taken  mostly  from 
the  U.  S.  Consular  Reports. 

The  following  table  shows  the  progressive  condition  of  Railways  in  Brazil 
since    1854. 

Miles 

1854 9x/2 

1863 265 

1872 578 

1882 2,768 

1892 7,027 

1902 9,725 

1907 10,938 

1912   14,213 

Railway  Receipts  and  Expenditures. 

In  1910  the  total  receipts  of  railroads  amounted  to  $37,169,357.  The 
total  expenses  were  $32,032,400.  The  results  of  working  the  lines  were  as 
follows: 

Government-  Lines  not  owned 

*Year  1910  owned  Lines  bv  Government 

Total  Receipts $21,174,239  '$15,995,118 

Total  Expenses 20,709,694  11,322,766 

Net  Profits $464,545  $4,672,352 

In  1909  (latest  date  obtainable)  total  receipts  of  all  lines  were  $37,854,379. 

Miscellaneous 

That  railroad  building  in  Brazil  has  not  always  been  an  easy  matter  is  shown 
by  the  intricate  engineering  problems  met  with  in  the  construction  of  the  Leo- 

48 


AND     CENTRAL     AMERICA 

joldina  Ry.  and  the  San  Paulo  Ry.  The  former  railway  or  system  of  railways 
tvas  the  project  of  an  English  company  which  took  over  and  consolidated  a 
number  of  lines  (including  the  Maua-line  built  in  1854,  one  of  the  oldest  rail- 
ways in  South  America).  The  lines  were,  at  the  time  they  were  taken  over 
Dy  the  present  company,  rather  lightly  built  and  in  poor  physical  condition, 
rhese  were,  however,  rebuilt  and  put  in  excellent  shape.  The  tremendous 
grades  to  be  met  with  (in  some  places  one  to  twelve)  made  necessary  the  using 
jf  the  rack  system,  "adhesion  traction,"  the  "switchback,"  loops,  horse-shoe 
:urves  and  other  means  to  handle  the  traffic.  Upwards  of  75%  of  the  mileage 
las  been  laid  along  the  sides  of  the  hills  and  mountains,  necessitating  a  vast 
amount  of  deep  and  wide  cuttings.  This  portion  of  the  mileage  is  a  succession 
}f  twists  arid  turns;  other  portions  are  built  through  land  subject  to  frequent 
floods,  particularly  the  country  adjacent  to  the  Parahybuna  River. 

The  San  Paulo  Ry.  cost  a  vast  sum  per  mile  to  build,  but  the  end  justified 
the  means.  The  863^  miles  of  main  line  earned  last  year  well  in  excess  of 
£100,000  per  mile  (exceeding  the  per  mile  earnings  of  the  Pittsburgh  &  Lake 
Erie  in  the  U.  S.  and  the  Panama  R.  R.),  and  the  entire  system  including  the 
metre  gauge  Bragantina  Section  earned  over  $75,000  per  mile. 

It  is  now  possible  to  go  by  rail  from  Rio  de  Janeiro,  Brazil,  to  Monte  Video 
n  Uruguay,  and  to  Buenos  Ayres,  and  it  will  soon  be  possible  to  reach  Asun- 
:ion  the  capital  of  Paraguay. 


Brazil  Ry. 

The  Brazil  Ry.  was  incorporated  in  Maine  in  1906,  to  own  and  operate  a 
system  of  railways  in  the  Republic  of  Brazil.  The  capital  stock  is  authorized  to 
the    amount   of   $60,000,000,    as    follows: 

Authorized  Issued 

6%  Preferred  Shares  of  $100  each  (of  which  150,375 

are   Cumulative   Non-Participating   and   49,625 

Non-Cumulative  Participating $20,000,000     $20,000,000 

Common  Shares  of  $100  each 40,000,000       32,000,000 

The  Cumulative  and  the  Non-Cumulative  Preferred  Shares  confer  on  the 
respective  owners  thereof  the  right  to  preferential  cumulative  and  non- 
cumulative  dividends  respectively  at  the  rate  of  6%  per  annum  in  each  fiscal 
year  of  the  Company.  The  dividends  on  the  Cumulative  Preferred  Shares  are 
payable  in  priority  to  dividends  on  the  Non-Cumulative  Preferred  Shares. 
After  payment  of  a  6%  dividend  on  the  Common  Shares  in  any  year  the 
holders  of  the  Non-Cumulative  Preferred  Shares  have  the  right  to  participate 
equally  and  pro  rata  with  the  holders  of  the  Common  Shares  in  respect  of  any 
further  dividends  for  such  year.  Upon  the  liquidation  of  the  Company  the 
holders  of  the  Preferred  Shares  are  entitled  to  a  preference  in  any  distribution 
of  assets  to  the  extent  of  the  par  value  of  the  Preferred  Shares,  and  in  the 
case  of  the  Cumulative  Preferred  Shares  to  any  dividends  accumulated  and 
unpaid  thereon,  all  as  more  fully  specified  in  the  By-laws  of  the  Company. 

Dividends  at  the  rate  of  6%  per  annum  are  being  paid  on  the  preferred  stock. 

The  bonds  and  debentures  outstanding  December  31,  1912,  were  as  follows: 

49 


THE     RAILWAYS     OF     SOUTH 

Authorized  Sold 

43^%  First  Mortgage  60-year  bonds £15,000,000  £10,019,074 

4J^%  bonds  (French  Series) Frs.  86,500,000     Frs.  86,500,000 

5%  50-year  Debentures  (due  1957) $5,000,000  $1,5 10,500 

5%  Convertible  Debentures £2,000,000'  £2,000,000 

During  1912,  £2,527,443  of  the  above  4H%  First  Mortgage  60-year  bonds 
were  sold  as  against  £3,022,380  bonds  sold  in  1911.  The  maturity  date  of 
the  Sterling  bonds  is  1969. 

The  £2,000,000  5%  convertible  Debentures  were  issued  in  1912.  They 
mature  1922. 

An  additional  £2,005,000  4^%  First  Mortgage  bonds  and  $1,000,000 
5%  50-year  Debentures,  were,  on  December  31,  1912,  pledged  as  part  col- 
lateral for  certain  Loans  and  Guarantees. 

The  lines  in  Southern  Brazil,  directly  operated  by  the  company,  constituted 
on  December  31,  1912,  3128  miles  of  road.  About  2000  additional  miles  of 
road  were  projected  or  under  construction,  a  portion  of  which  mileage  has 
since  been  completed.  The  lines  extend  from  Sao  Paulo,  through  the  states 
of  Sao  Paulo,  Parano,  Sta.  Catharina  and  Rio  Grande  Do  Sul.  Lines  are  also 
in  operation  to  the  ports  of  Paranagua,  Sao  Francisca,  Porto  Alegre  and  Rio 
Grande  Do  Sul  and  a  number  of  branch  lines  are  in  operation  or  are  being 
constructed.  A  line  has  been  constructed  to  the  frontier  with  Uruguay, 
where  connection  is  afforded  with  the  lines  of  the  Central  of  Uruguay  Ry., 
allowing  through  traffic  to  Montevideo. 

Subsidiary  Railway  Lines. 

The  Brazil  Ry.  also  controls  the  Paulista  Ry.  (about  715  miles)  and  the 
Mogyana  Ry.  (997  miles).  See  list  of  securities  owned  by  the  Brazil  Ry.  in  a 
later  paragraph.  The  Paulesta  Ry.  is  located  in  the  central  portion  of  the 
State  of  Sao  Paulo,  while  the  Mogyana  Ry.  is  located  in  Northern  Sao  Paulo 
and  in  the  State  of  Minas  Geraes. 

The  earnings  of  the  various  lines  in  Southern  Brazil  directly  operated  by 
the  Brazil  Ry.  for  1913,  1912  and  1911  were  as  follows: 

1913  1912  1911 

Gross  Receipts $14,305,665  $13,057,690  $11,714,019 

Working  Expenses 9,050,665  7,483,895  6,610,711 

Net  Receipts 5,255,000  5,573,795  5,103,308 

Mileage  operated 3128  miles  3128  miles 

Ratio  of  Expenses  to  Gross 63.3%  57.3%  56.4% 

Ratio  of  Expenses  to  Gross,  57.3%. 

Note:  The  statistics  above  were  rendered  in  the  annual  report  of  the 
company,  expressed  in  Brazilian  Currency.  The  ratio  of  33j^c.  per  1000  Reis 
is  here  used. 

During  the  year  1912,  new  rail  was  laid  on  158  miles  of  road;  bridges 
strengthened;  grades  reduced;  500,000  ties  and  new  ballast  placed  in  the  road; 
also  38  locomotives,  127  passenger  train  cars  and  1300  freight  cars  acquired. 

The  earnings  of  the  Paulista  Ry.  for  1912  and  1911  were  as  follows  (33j^c. 
per  1000  Reis): 

50 


AND     CENTRAL     AMERICA 

1912  1911 

Gross  Receipts $10,319,480  $9,045,100 

Working  Expenses 4,788,239  3,970,459 

Net  Receipts 5,531,241  5,074,641 

Mileage  Operated 715  miles  715  miles 

Ratio  of  Expenses  to  Gross 46.4%  43.9% 

Dividends  of  12%  were  paid  from  the  Surplus  Earnings  for  1912  and  1911. 

The  earnings  of  the  Mogyana  Ry.  for  1912  and  1911  were  as  follows  (33j^c. 
per  1000  Reis): 

1912  1911 

Gross  Receipts.  : $8,130,377  $6,935,764 

Working  Expenses 4,425,073  3,968,522 

Net  Receipts 3,705,304  2,967,242 

Mileage  Operated 997  miles  941  miles 

Ratio  of  Expenses  to  Gross 54.4%  57.2% 

Dividends  of  10%  per  annum  were  paid  from  the  Surplus  Earnings  for 
1912  and   1911. 

The  Gross  Receipts  for  1913  of  the  above  controlled  lines  were  $19,233,000, 
and  the  Net  Receipts  were  about  $8,725,000,  comparing  with  the  above  com- 
bined Gross  and  Net  Receipts  over  1912  of  $18,449,857  and  $9,213,543. 

Port  Enterprises 

The  Brazil  Ry.  controls  the  Port  of  Rio  de  Janeiro  Co.,  which  company 
owns  wharves,  etc.  in  Rio  de  Janeiro  and  has  acquired  some  valuable  plots  of 
land,  on  which  warehouses  have  been  erected,  and  through  a  Brazilian  sub- 
sidiary company  is  constructing  large  cold  storage  depots.  The  results  of 
working  the  lease  for  1912  were  as  follows:    Gross,  $2,055,304;    Net,  $257,270. 

The  Brazil  Ry.  is  also  constructing  a  Port  at  Rio  Grande  do  Sul  (to  be 
completed  in  1914).  This  enterprise  requires  the  completion  of  two  great 
training  walls  2j^  miles  each  in  length,  requiring  about  2,200,000  cubic  yards 
of  stone  and  further  requiring  about  10,500,000  cubic  yards  of  dredging. 
The  Port  will  be  of  sufficient  depth  to  harbor  vessels  of  considerable  size. 

Similar  interests  control  the  Port  of  Para  Co.  (see  under  Madeira-Mamore 

Ry.). 

Lands  and  Colonization 

The  company  is  colonizing  portions  of  its  lands  and  is  offering  low  terms  to 
settlers.  Some  468,000  acres  of  land  were  either  sold  or  were  for  sale  at  the 
beginning  of  1913.  The  land  grants  were  estimated  in  1911  to  contain  an 
area  of  about  6,000,000  acres,  of  which  a  large  portion  had  been  surveyed. 

Through  a  subsidiary  (the  Brazil  Land  and  Cattle  Co.)  cattle  raising  is  being 
carried  on  expensively.  In  1913  the  area  of  grazing  lands  purchased  contained 
8,163,081  acres.  The  company  at  that  time  had  about  200,000  head  of  native 
cattle  and  nearly  1,000  head  of  pure-bred  imported  cattle.  The  lands,  which 
are  well  watered,  are  being  divided  into  ranches,  and  are  being  fenced,  etc. 
The  company  will  begin  to  send  cattle  to  market  in  1914,  and  to  make  certain 
the  market,  are  constructing  jointly  with  Sulzberger  and  Sons  Co.,  of  New 
York,  a  large  modern  packing  factory  at  Sao  Paulo. 

51 


THE     RAILWAYS    OF     SOUTH 

A  subsidiary  of  the  Brazil  Ry.  (the  Southern  Brazil  Lumber  &  Colonization 
Co.)  possesses  some  560,000  acres  of  forest  lands.  A  large  number  of  mills, 
also  logging  railways,  etc.,  together  with  a  fully  equipped  planing  mill  and  box 
factory,  have  been  completed.  23,000,000  feet  of  lumber  was  produced  in 
1912,  and  since  May,  1913,  the  railway  has  been  regularly  handling  this 
lumber,  largely  to  the  Port  of  Sao  Francisco. 

Consolidated  Revenue  Account. 

The  earnings  of  various  railways,  etc.  operated  or  controlled  have  been 
shown  on  a  previous  page.  The  Brazil  Ry.  as  the  parent  company  for  these 
enterprises,  reported  the  following  income  for  the  year  1912: 

Net  Revenue5  including  (.1)  Interest,  Dividends  and   Commissions 

and  Surplus  from  Operations  of  Railways  Under  Lease  $4,854,094; 

(2)  Sundry  Receipts,  $112,469,  and  (3)  Profit  on  Construction  of 

Railway  Lines  for  Account  of  Subsidiary  Companies,  $750,098.  .  .  .$5,716,661 

Charges,  including  (1)  Interest  on  Bonds  and  Debentures,  $2,880,- 

137;  (2)  Sinking  Fund,  $12,481;  (3)  Interest  and  Discount  on  Loans 

and    Bills,    $585,244;  "(4)    Administration    and    General    Expense.?, 

$344,145 3,822,007 

Balance $1,894,654 

Dividend  for  year  on  Preferred   Stock $1,012,500 

Of  the  balance,  $820,418  was  appropriated  to  Reserve  Accounts. 

Securities   Owned. 

The  Shares,  Debentures  and  Interests  in  other  companies,  lands,  buildings, 
leases,  etc.,  were  valued  on  the  books  of  the  Brazil  Ry.,  December  31,  1912, 
(at  cost)  at  $113,897,169.  Among  the  securities  owned  as  of  that  date  were 
the  following:  Owned 

Outstanding  bv  Brazil  Rv. 

San  Paulo-Rio  Grande  Ry.  shares $5,000,000  $4,730,800 

Sorocabana  Ry.  preferred  shares 2,000,000  2,000,000 

"  "   ordinary  shares 8,000,000  7,936,000 

"   First  Debentures  (4V2%) £825,000 

Madeira-Mamore   Ry.   pfd.  shares 1,000,000  *$500,000 

"  "  "     common  shares.    10,000,000  *5, 000,000 

"     6%  bonds.. ." £900,000 

Uruguay  Ry.  stock f  15,000,000  f$  15,000,000 

"  "     4}/£%  First  Mtge  bonds £1,150,000 

Bolivia  Devel.  and    Colonization  Co..    15,000,000  $15,000,000 

Owned  by 
Outstanding  Brazil  Rv. 

Paulista    Ry.  shares  (par  about  $64) 400,000  shares      157,783  shares 

Mogyana  Ry.  shares  (par  about  $64) 400,000  shares      107,093  shares 

*Port  of  Para  Co.  owns  balance  of  stock  (see  Madeira-Mamore  Ry.). 
fHolds   large   interests  in   five   railways   in   Uruguay.      (See  Uruguay  Uru- 
guay Northern  Ry.,  Uruguay  Midland  Ry.,  etc.) 

The  company  also,  indirectly,  controlled  the  Antofogasta  (Chili)  and  Bo- 
livia Ry.  until  recently.  The  Argentine  Ry.  (which  see)  is  controlled  by  the 
interests  in  control  of  the  Brazil  Ry. 

52 


AND     CENTRAL     AMERICA 

As  of  June  30,  1912,  the  Brazil  Ry.  and  its  subsidiaries  had  in  service  the 
following  equipment:  444  locomotives;  574  passenger  train  cars,  6,622  freight 
and  service  cars. 

Various  securities  of  this  company  are  listed  on  the  Stock  Exchanges  of 
London,  Paris,  Baltimore,  etc. 


Brazil  Great  Southern  Ry. 


The  Statistics  in  the  annual  report  of  the  Company  are  rendered  expressed  partially 
in  Pounds  Sterling  and  partially  in  Brazilian  Currency.  The  ratio  here  in  used  in  rendering 
the  latter  into  U.  S.  Gold,  is  approximately  34c.  per  1,000  Reis. 

liles 

Gross  Revenue 
$136,925  £27,385 

The  Gross  Receipts  for  1913  were  approximately  $140,590  (£28,118). 

Stock  Outstanding  Bonds  Outstanding 


Avg.  Miles 

Avg.  Miles 

Year 

Oper. 

Gross  Revenue 

Year 

Oper. 

1911 

110 

$143,935          £28,787 

1912 

110 

December  31,  1912 

Preference $1,125,000 

"A"  Shares 625,000 


December  31,  1912 

Debentures  (6%) $1,939,345 

Flood  Loan  Bonds  (7%).. .  .  215,000 


Capitalization 

Total Per  Mile 

Stock £350,000          $1,750,000  $15,909 

Bonds  and  Debentures 430,869            2,154,345  19,585 

Total 780,869            3,904,345  35,494 

Fixed  Charges  below  include  $60,290  (£12,058)  Sinking  Fund  for  Redemption  of  6% 
Mortgage  Debentures,  also  $12,550  (£2,510)  London  Office  Expenses  usually  included  in 
Operating  Expenses  in  the  statements  of  other  roads  included  in  this  book. 

Income  Account  Year  Ending  June  30,  1913 

Average  miles  operated,  110. 

Gross  Receipts  (1913  about  £28,118) 

Operating  Expenses 

Net  Receipts 

Other  Income 

Total  Net  Income 

Fixed  Charges  (including  for  Taxes) 

Surplus 


T01 

£27,385 

ial 

$136,925 

Per  Mile 
$1,245 

25,901 

129,505 

1,177 

1,484 

7,420 

68 

41,118 

205,590 

1,869 

42,602 

213,010 

1,937 

42,429 

212,145 

1,929 

173 

865 

8 

s 
£8,061 

$40,304 

$366 

9,060 

45,300 

412 

5,625 

28,126 

256 

3,155 

15,775 

143 

♦Operating  Expenses 

Maintenance  of  Way 

Maintenance  of  Equipment  and  Locomotive  Expenses 

Traffic  and  Transportation  Expenses 

General  Expenses 

Ratio  of  Operating  Expenses  to  Gross  Receipts  94.5  per  cent. 

♦Subdivision  of  Operating  Expenses  approximately  correct. 

Other  Income  above  includes  $202,500  (£40,500)  received  from  Brazilian  Government 
for  interest  on  Authorized  Capital  for  year  ending  December  31,  1912,  also  $1,405  (£281) 
profit  on  International  Ferry. 

Appropriation  of  Gross  Income 

1912-13 

For  Maintenance  and  Locomotive  Expenses 25.0% 

For  Traffic,  Transportation  and  General  Expenses 12.8% 

For  Fixed  Charges 61.9% 

For  Surplus 0.3% 

100.0% 
53 


THE     RAILWAYS     OF     SOUTH 

NOTES. 

The  stock,  Debenture  Capital  and  bonds  of  this  company  as  of  December 
31,  1912,  was  as  follows: 

Preference  Shares $1,125,000  £225,000 

"A"  Shares 625,000  125,000 

6%  Debenture  Stock 1,000,000  200,000 

6%  Mortgage  Debentures 440,000  88,000 

7%  Flood  Loan  Bonds 215,000  43,000 

No  dividends  are  being  paid  on  the  Preference  Shares,  which  are  cumulative. 
The  arrears  of  Cumulative  Dividends  December  31,  1912,  amounted  to 
$1,929,375   (£385,875). 

The  company  received  in  1912  from  the  Brazilian  Government  $202,500 
as  guaranteed  interest. 

The  Brazil  Great  Southern  Ry.  operates  110  miles  of  main  line  in  the 
state  of  Rio  Grande  Do  Sul,  the  terminals  being  located  (December  31,  1912) 
at  Quarahim  on  the  frontier  of  Uruguay  and  at  Itaqui.  An  extension  from 
Itaqui  northward  to  San  Borja  has  been  practically  completed  and  was 
opened  for  some  traffic  early  in  1913.  A  company  (the  Quarahim  Inter- 
national Bridge  Co.,  Ltd.)  controlled  by  this  railway  jointly  with  the  North- 
western of  Uruguay  Ry.,  is  building  a  bridge  from  Quarahim  to  an  opposite 
point  in  Uruguay.  The  two  companies  guarantee  that  the  bridge  tolls  shaU 
be  enough  to  meet  the  annual  service  for  interest  and  sinking  fund  of  5^% 
upon  the  Bridge  Co.'s  Debenture  Stock,  of  which  £100,000  had  been  issued 
to    December    31,     1912. 

The  Brazil  Great  Southern  Ry.  as  of  December  31,  1912,  carried  among 
its  assets  $300,000  (£60,000)  Cash  or  Securities  and  Shares  and  Debentures  of 
the  Brazil  Great  Southern  Ry.  Extension,  Ltd.,  received  or  receivable  from 
the  company  part  contingent  upon  the  completion  of  extension. 


54 


AND     CENTRAL     AMERICA 
Brazil  North  Eastern  Ry. 

Avg.  Miles  Avg.  Miles 

Year  Oper.  Gross  Receipts  Year        Oper.  Gross  Receipts 

1911  436  $785,190  £157,038        |        1912  472  $895,456  £179,091 

Note:  Gross  receipts  for  1913  were  approximately  $942,000  (£188,400). 

Stock  Outstanding  Debenture  Stock  Outstanding 

December  31,  1912                            |                          December  31,  1912 
Common $1,750,000        |        Deb.  Stock  (6%) $1,750,000 

Capitalization 

Total Per  Mile 

Stock £350,000          $1,750,000  $3,708 

Bonds 350,000            1,750,000  3,708 

Total 700,000            3,500,000  7,516 

Fixed  Charges  below  include  $87,124  (£17,425)  for  Government  Fiscalization  and  Lease 
of   Line. 

Income  Account  Year  Ending  December  31,  1912 

Total  miles  operated  472. 

Gross  Receipts  (1913,  about  £188,400) £179,091 

Operating  Expenses 

Net  Receipts 

Other  Income 

Total  Net  Income 

Fixed  Charges 

♦Surplus ' 

Operating  Expenses 

Maintenance  of  Way 

Maintenance  of  Equipment 

Traffic  and  Transportation  Expenses 

General  Expenses 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  71.6  per  cent. 

*This  Surplus  before  deducting  $46,878  (£9,376)  Rolling  Stock  Renewal  and  Drought 
Reserve  Fund  and  $20,000  (£4,000)  Amortization  Fund. 

Appropriation  of  Gross  Income  1912 

For  Maintenance  Expenses 27.5% 

For  Traffic,  Transportation  and  General  Expenses 42.8% 

For  Fixed  Charges 22.1% 

For  Surplus 7.6% 

100.0% 

1912 

Ton  miles  per  mile  of  road 15,223 

Passenger  miles  per  mile  of  road 21,347 

NOTES. 

This  company  at  the  beginning  of  the  year  1913  operated  472  miles  of 
railway  located  in  the  State  of  Ceara,  Brazil,  extending  from  the  Port  of 
Ceara  inland;  36  miles  of  line,  known  as  the  Nova  Russas  and  Cajas  section 
were  opened  for  operation  during  1912.  Additional  mileage  was  completed 
during  1913. 

As  of  December  31,  1912,  the  company  had  outstanding  the  following 
capitalization: 

Shares  Capital  (par  £l) £350,000         $1,750,000 

First  Debenture  Stock  (6%) 350,000  1,750,000 

No  dividends  were  paid  on  the  Share  Capital  from  the  Surplus  of  1912. 

55 


Total 

Per  Mile 

179,091 

$895,456 

$1,897 

128,205 

641,027 

1,358 

50,886 

254,429 

539 

3,113 

15,568 

33 

53,999 

269,997 

572 

40,218 

201,091 

426 

13,781 

68,906 

146 

£32,987 

$164,936 

349 

17,193 

85,965 

182 

59,968 

299,841 

636 

18,057 

90,285 

191 

THE     RAILWAYS     OF     SOUTH 

Cotton  and  cotton  products,  firewood  and  timber,  stone,  tiles  and  bricks 
and_  live  stock  formed  the  principal  commodities  handled  by  this  railway 
during  1912;  281,318  passengers  were  carried,  the  receipts  from  this  source 
being  £39,624. 

At  the  close  of  1912  the  Brazil  North  Eastern  Rys.  owned  41  locomotives, 
46  passenger  cars  and  282  freight  cars. 

The  earnings  for  1912  were  somewhat  affected  by  a  strike  which  lusted 
for  three  weeks. 


Great  Western  Ry.  of  Brazil. 

Avg.  Miles  Avg.  Miles 

Year        Oper.  Gross  Receipts  Year        Oper.  Gross  Receipts 

1911  934        $3,224,440  £644,888  1912  1,004      *$3,424,925        *  £684,985 

Gross  Receipts  for  1913  were  approximately  £750,000. 

■/ 

Stock  Outstanding  *Debenture  Stock  Outstanding 

December  31,  1912  December  31,  1912 

Common $6,250,000  Debenture  Stock  (6%) $1,531,250 

Preferred  (6%) 3,750,000  Debenture  Stock  (4%) 8,415,500 

Capitalization 


Total — Per  Mile 

Stock £2,000,000          $10,000,000  $9,960 

Debenture  Stock 1,989,350             9,946,750  9,907 

Total 3,989,350            19,946,750  19,867 

Fixed  Charges  below  include  $61,765  (£12,753)  paid  account  of  Sinking  Fund,  $118,953 
for  Government  Percentages  and  Fiscalization. 

Income  Account  Year  Ending  December  31,  1912 

Average  miles  operated,  1,004. 

Gross  Receipts 

Operating  Expenses 

Net  Receipts 

Other  Income 

Total  Net  Income 

Fixed  Charges 

tSurplus 


Maintenance  of  Way 

Maintenance  of  Equipment 

Traffic  and  Transportation  Expenses. 
General  Expenses 


Operating  Expenses 


Total— 

Per  Mile 

£684,985 

$3,424,925 

•  $3,411 

455,938 

2,279,690 

2,270 

*229,047 

*1, 145,235 

1,141 

2,485 

12,425 

12 

231,532 

1,157,660 

1,153 

93,745 

468,725 

467 

137,787 

688,935 

686 

es 

£98,167 

$490,835 

$489 

58,921 

294,605 

293 

235,070 

1,175,350 

1,170 

63,780 

318,900 

318 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  66.6  per  cent. 
*In  1911  Net  Operating  Revenues  were  (£204,459)  $1,022,295. 
fThis  Surplus  before  deducting  $5,000  (£1,000)  contribution  to  Amortization  Fund. 

Appropriation  of  Gross  Income 

1912 

For  Maintenance  Expenses 22.8% 

For  Traffic,  Transportation  and  General  Expenses 43.5% 

For  Fixed  Charges 13.6% 

For  Surplus 20.0% 

100.0% 

1912 

Ton  miles  per  mile  of  road 42,023 

Passenger  miles  per  mile  of  road 45,290 

56 


AND     CENTRAL     AMERICA 

NOTES. 

Dividends  of  6%  per  annum  have  been  paid  on  both  the  Preferred  and  the 
Ordinary  Stock  for  a  number  of  years.  Prior  to  1904  the  outstanding  Share 
Capital  consisted  only  of  Ordinary  Stock  of  £20  par  value.  In  1904  each 
share  of  this  class  of  stock  was  exchanged  for  £10  of  Preferred  and  £10  of 
Ordinary  Stock. 

The  Outstanding  Capitalization  December  31,   1912,  was  as  follows: 

Ordinarv  Shares £1,250,000  $6,250,000 

Preferred  Shares  (6%) 750,000  3,750,000 

Permanent  6%  Debenture  Stock 306,250  1,531,250 

Debentures  4% *1, 693, 700  *8,468,500 


Total £3,999,950         $19,999,750 

*Of  this  total  £10,600  ($53,000)  were  redeemed  during  1912  by  Sinking 
Fund. 

This  railway  or  network  of  railways  extends  from  the  port  of  Pernambuco 
northward  along  the  coast  and  also  into  the  interior,  reaching  Parahiba, 
Jaragua,  Natal,  etc.  During  recent  years  the  mileage  has  been  greatly  in- 
creased, 1,004  miles  being  operated  at  the  close  of  1912  as  against  652  miles 
in  1903.  The  system  operates  in  the  States  of  Pernambuco,  Alagoas,  Para- 
hiba and  Rio  Grande  do  Norte. 

A  concession  has  been  obtained  from  the  State  Government  of  Alagoas  for 
the  construction  of  a  line  of  approximately  93  miles  to  connect  Bom  Jardin 
on  the  Alagoas  section  of  the  Great  Western  of  Brazil  Ry.  with  the  town  of 
Jacuhype,  together  with  a  branch  to  Leopoldina.  A  subsidiary  company 
has  been  formed  under  the  title  of  the  Alagoas  &  Northern  Ry.,  and  in  re- 
turn for  a  guarantee  on  the  debenture  capital  necessary  for  the  construction 
of  the  extension,  the  Great  Western  of  Brazil  Ry.  have  been  allotted  the 
Ordinary  Share  Capital  of  the  new  company.  The  concession  carries  with  it 
a  State  guarantee  of  5%  on  a  capital  of  45  contos  of  reis  per  kilometer  (0.62 
of  a  mile).  The  line  will  pass  through  a  rich  sugar  cane  district  and  it  is 
expected  that  a  good  return  will  be  derived  from  its  operation. 

In  1913  the  capital  powers  of  the  company  were  increased  by  £500,000. 
The  capital  expenditures  during  1912  were  £469,209. 

During  1912,  2,674,351  passengers  were  carried  as  against  2,341,511  in 
1911.  The  freight  handled  consisted  of  71,658  head  of  live  stock  and  1,065,- 
715  tons  of  goods,  among  which  were  the  following: 

Sugar  and  Sugar  Cane 443,416  tons 

Cotton  and  Cotton  Seed 11 1,552 

Stone 97,521 

Firewood  and  Timber 87,316 

Sundries 68,697 

Mandioca 33,943 


57 


THE     RAILWAYS     OF     SOUTH 
Leopoldina  Ry. 


Avg.  Miles 

Avg.  Miles 

Year 

Oper. 

Gross 

Receipts 

Year 

Oper. 

Gross  R 

eceipts 

1903 

1412 

£831,494 

$4,157,470 

1908 

1542 

£1,206,617 

$6,033,085 

1904 

1423 

800,032 

4,000,160 

1909 

1542 

1,215,083 

6,075,415 

1905 

1423 

1,126,167 

5,630,835 

1910 

1585 

1,318,116 

6,590,580 

1906 

1423 

1,182,825 

5,914,125 

1911 

1625 

1,365,919 

6,829,595 

1907 

1489 

1,254,557 

6,272,785 

1912 

1651 

*1, 688,926 

*8,444,630 

*The  Gross  Receipts  for  1913  amounted  to  $9,351,855  (1,870,371). 

Stock  Outstanding  Bonds  Outstanding 

December  31,  1912  December  31,  1912 

Ordinary $28,453,450  fDebenture  Stock   (4%) $22,495,300 

Preference  (%) 14,226,700 

♦Ordinary   £5,690,690;  Preference  £2,845,340.  t £4,495,300. 

Capitalization 

Total Per  Mile 

Stock £8,536,030          $42,680,150  $25,851 

Debenture  Stock 4,495,300            22,495,300  13,625 

Total 13,031,330            65,175,450  39,476 

Income  Account  Year  Ending  December  31,  1912 

Average  miles  operated  1,651. 


Total Per  Mile 

Gross  Receipts  (1913,  £1,870,371) £1,688,926  $8,444,630  $5,115 

Operating  Expenses 1,086,657  5,433,285  3,291 

Net  Receipts 602,269  3,011,345  1,824 

Other  Income 18,007  90,035  55 

Total  Net  Income 620,276  3,101,380  1,879 

Fixed  Charges 169,497  847,485  513 

Surplus 450,779  2,253,895  1,366 

Operating  Expenses 

Maintenance  of  Way $320,491  $1,602,455  $971 

Maintenance  of  Equipment 192,798  963,990  584 

Traffic  and  Transportation  Expenses 460,298  2,301,490  1,394 

General  Expenses 113,070  565,350  342 

Ratio  of  Operating  Expenses  to  Gross  Receipts  64.3  per  cent. 

♦This  Surplus  before  deducting  $100,000  (£20,000)  transferred  to  Reserves  for  repairing 
damage  to  lines  caused  by  floods.  $100,000  (£20,000)  transferred  to  Reserve  to  provide 
Automatic  Brake  Equipment  and  $115,000  (£23,000)  transferred  to  Reserve  for  redemption 
of  4%  Debenture  Stock. 

Appropriation  of  Gross  Income  1912 

For  Maintenance  Expenses 30.1% 

For  Traffic,  Transportation  and  General  Expenses 33.6% 

For  Fixed  Charges 9.9% 

For  Surplus 26.4% 

100.0'; 

NOTES 

The  Preference  Shares  of  this  Company  are  limited  to  dividends  of  5J^%  in 
priority  to  the  Ordinary  Shares.     The  full  dividend  is  being  paid. 

The  Ordinary  Stock  of  which  £5,820,000  ($29,100,000)  is  authorized  and 
£5,690,690  ($28,453,450)  outstanding  has  received  dividends  in  recent  years 

as  follows: 

1899-00    '01  to '03     '04     '05-'06       '07     '08     '09    '10     '11      '12      '13 
%yrly.     W2  3^  3  4  ty2    3^    3^   3^      2  4      4 

The  4%  Debenture  Stock  £4,495,300  outstanding  has  no  date  of  maturity. 
It  may,  however,  be  retired  at  the  company's  option.  On  December  31,  1912, 
£314,378  ($1,571,890)  was  reserved  to  redeem  this  Debenture  Stock. 

58 


AND     CENTRAL     AMERICA 

The  Leopoldina  Ry.  owns  625,001  shares  of  a  par  value  of  £l  each 
(£1,250,000  outstanding)  of  the  Leopoldina  Terminal  Co.,  Ltd.,  received  as 
consideration  for  the  unconditional  guarantee  of  the  pavment  of  principal 
and  interest  and  sinking  fund  £1,250,000  ($6,250,000)  5%  First  Debentures 
of  the  Terminal  Cc 

This  Railway  runs  from  Nichteroy  opposite  Rio  Janeiro  northward  through 
the  valley  of  the  Parahyba  River,  to  Campos,  Leopoldina,  etc.,  with  a  number 
of  branches  and  cross  lines.  There  is  also  a  line  from  Rio  to  Petropolis,  a 
famous  summer  resort  of  Brazil.  The  construction  of  portions  of  this  railroad 
were  among  of  the  engineering  feats  of  the  age,  and  its  final  successful  completion 
and  profitable  operation  under  difficulties  reflect  the  greatest  possible  credit 
to  the  management.  Portions  of  the  country  traversed  are  extremely  moun- 
tainous, with  tremendous  grades,  while  along  certain  parts  of  the  line 
heavy  floods  are  frequent.  The  railway  has  been  constructed  to  meet  these 
difficulties  and  to-day  is  one  of  the  best  properties  in  South  America. 


Madeira-Mamore  Ry. 

This  company  operates  a  line  of  railway  in  the  far  interior  of  Brazil.  The 
line  was  constructed  to  bring  the  navigable  waters  of  the  Amazon  into  con- 
nection with  the  northern  part  of  the  State  of  Matto  Grosso  in  Brazil,  the 


^Xr  o   . 

)  ?u, 

fc£*LX  I    i      * 


north  and  west  of  Bolivia  and  part  of  the  Brazilian  Acre  territory.  The 
Madeira-Mamore  Ry.  has  a  terminus  at  Porto  Velho  on  the  Madeira  River, 
near  the  head  of  navigation.     The  railway  passes  around  the  falls  which  have 

59 


THE     RAILWAYS     OF     SOUTH 

hitherto  made  a  direct  route  from  eastern  Bolivia  to  the  Atlantic  Ocean 
impossible,  and  will  open  up  a  vast  tract  of  country,  rich  in  rubber  and  other 
forest  products,  etc.  The  other  terminus  of  the  railway  is  at  present  at 
Guajara  Miram  which  is  located  on  the  Mamore  River.  The  Mamore  River 
is  a  tributary  of  the  Madeira  River  and  extends  in  a  southerly  direction  into 
the  heart  of  the  Republic  of  Bolivia.  The  Madeira  River  in  turn  flows  in  a 
northeasterly  direction  joining  the  Amazon'  River  near  Manaos.  From  near 
Guajara  Miram,  Brazil,  the  line  is  being  extended  across  the  Bolivian  frontier, 
westerly  to  the  town  of  Riberalta,  at  the  point  where  the  Beni  and  the  Madre 
de  Dios  Rivers  converge.  This  extension,  which  is  to  be  sixty-two  miles  in 
length,  will  open  up  traffic  on  the  Beni  River  which  is  navigable  for  some 
distance.  The  company  is  guaranteed  for  twenty-five  years,  by  the  Bolivian 
Government,  5%  on  the  cost  of  construction,  and  also  has  the  right  to  purchase 
a  total  of  Q, 270, 000  acres  of  land  at  l^c.  (%d.)  per  acre  for  grazing  land  and  at 
17c.  (8  Ji>d.)  per  acre  for  rubber  lands.  About  6,000,000  acres  were  being  marked 
out  in    1912-13. 

The  SI. 000,000  preferred  stock  and  the  $10,000,000  ordinary  stock  is  owned 
one-half  by  the  Port  of  Para  Co.  and  one-half  by  the  Brazil.  Each  of  the 
controlling  companies  received  a  large  amount  of  6%  First  Mortgage  60- 
year  bonds  in  pavment  for  advances.  The  authorized  issue  of  these  bonds  is 
£3,000,000  of  which  approximately  £2,600,000  had  been  issued.  £1,000,000 
are  guaranteed  by  the  Port  of  Para  Co.  and  the  balance  (the  interest  on  which 
has  been  reduced  to  5lA.c7o)  are  guaranteed  by  the  Brazil  Ry.  The  holdeer  of 
the  bonds  guaranteed  by  the  former  have  the  right  to  convert  them  on  any 
interest  date  to  and  including  April  17,  1916,  into  6%  Preferred  (Participat- 
ing) Stock  of  the  Port  of  Para  Co.  This  latter  company  had  outstanding 
December  31,  1912,  $10,500,000  (authorized  $17,500,000)  Preferred  Stock, 
S13, 000,000  (authorized  $15,000,000),  Common  Stock  £3,600,000  5%  50- 
Year  First  Mortgage  bonds,  £2,484,102  5%  60-Year  First  Mortgage  bonds 
(authorized  £5,000,000)  and  $6,919,364  loans.  This  company  has  con- 
structed extensive  Port  works  at  Para,  including  the.  building  of  6,370  feec 
of  qua}'  wall,  13  warehouses,  an  electric  power  house,  docks,  a  coal  depot, 
oil  storage  tanks,  an  office  building,  etc..  and  the  dredging  of  a  three  mile 
channel  to  the  depth  of  30  feet. 

The  rental  paid  by  this  company  to  the  Government  is  as  follows:  (1)  5% 
of  the  Gross  Receipts  for  the  first  20  years  from  January  1,  1912;  10%  for 
the  second  20  years  and  20%  during  the  last  20  years,  the  concession  expiring 
at  the  end  of  60  years;  (2)  20%  of  the  Surplus  Net  Earnings  remaining  after 
payment  of  the  above  percentage  of  Gross  Receipts  and  12%  interest  on  the 
capital  of  the  Company  recognized  by  the  GDvernrr^n;:. 

The  Gross  Earnings  for  the  year  ending  December  31,  19  1  2,  including  eight 
months  (January  1  to  September  7)  during  which  period  the  operation  was 
provisional,  were  approximately  $1,552,056,  against  approximately  $706,905 
in  1912.  The  Net  Earnings  for  1912  were  about  $579,395.  A  total  of  about 
226  miles  was  operated  at  the  close  of  1912,  against  137  miles  operated  July, 
1911,  and  against  194  miles  operated  February  3,  1912.  The  receipts  from 
sales  of  rubber  during  the  first  ten  months  of  1913  were  over  £28,000  ($140,- 
000).  For  the  year  1913  Gross  Earnings  were  approximately  $1,701,335  and 
Net  Earnings  were  $812,335. 

The  Bolivian  Development  &  Colonization  Co.,  controlled  by  the  interests 
controlling  the  Brazil  Ry.,  is  to  construct  a  line  starting  from  La  Paz,  Bolivia, 
where  connections  will  be  afforded  with  the  Antofagasta  (Chili)  and  Bolivia, 

60 


AND     CENTRAL     AMERICA 

Ry.,  extending  to  the  Pacific  Ocean  at  Antofagasta,  Chili.  The  new  railway 
will  extend  from  La  Paz  to  a  point  on  the  Beni  River,  probably  at  Puerto  Brais. 
This  will  op.en  a  through  trade  route  from  Chili  and  western  Bolivia  to  Manoas, 
Para,  the  Amazon  River  and  the  Atlantic  Ocean. 

About  39%  of  the  traffic  of  the  Madeira-Mamore  Ry.  for  1912  consisted  of 
rubber. 

See  Brazil  Ry. 


San  Paulo  Rys. 


Avg.  Miles 
Half-Year  Oper.  Gross  Receipts 

+1913  tl34  £$4,972,105  £994,421 

♦Period  from  January  1,  to  June  30,  1913. 

tMain  Line,  5  ft.  3  in.  gauge,  86  '■>  miles;  Bragantine  Section,  1  metre  gauge,  47  3i  miles. 
JMain  Line  earned  for  the  six  months  period  $4,863,390  (£972,678)  and  Bragantina  Ry. 
$107,465  (£21,493). 

Stock  Outstanding  Bonds  Outstanding 

June  30,  1913  June  30,  1913 

Ordinary $15,000,000  *Debenture  Stock $10,000,000 

Preference  (5  %) 5,000,000  Equipment 

*  £750,000,  5J£%;  £250,000,  5%;  £1,000,000,  4f,\ 

Capitalization 


Total —  Per  Mile 

Stock £4,000,000          $20,000,000  $149,254 

Debenture  Stock 2,000,000            10,000,000  74,627 

Total 6,000,000            30,000,000  223,881 

Fixed  Charges  below  include  $254,425  Depreciation  in  value  of  Investments. 

Income  Account  Half  Year  Ending  June  30,  1913 
Average  miles  operated,  134. 


— — ■ Total Per  Mile 

Gross  Receipts £994,421            $4,972,105  $37,105 

Operating  Expenses 797,877              3,989,385  29,771 

Net  Receipts 196,544                  982,720  7,334 

Other  Income 24,896                  124,480  929 

Total  Net  Income 221,440              1,107,200  8,263 

Fixed  Charges 100,718                  503,590  3,758 

♦Surplus 120,722                 603,610  4,505 

Operating  Expenses 

Maintenance  of  Way £176,885               $884,425  $6,600 

Maintenance  of  Cars 138,686                 693,430  5,175 

tTraction  Power 212,333              1,061,665  7,923 

Traffic  Exoenses 196,402                  982,010  7,328 

General  Expenses,  etc 73,571                  367,855  2,745 

Ratio  of  Operating  Expenses  to    G -oss  Receipts  80.2% 

♦£280,971   ($9,404,855)  balance  from  preceding  Half-year  after  payments   of   dividends, 
etc.,  was  carried  forward  and  was  applicable  for  dividends. 

tlncludes  expenses  of  maintaining  and  operating  locomotives. 

Appropriation  of  Gross  Income 

♦1913 

For  Maintenance  and  Traction  Power  Expenses 51.8% 

For  Traffic  and  General  Expenses 26 . 5  % 

For  Fixed  Charges 9 . 9  '"c 

For  Surplus 11.8',. 


♦Six  months  only  (January  1  to  June  30,  1913). 

61 


100.0', 


THE     RAILWAYS     OF     SOUTH 

The  capitalization  of  this  company  as  of  June  30,   1913,  was  as    follows 
(all   authorized   securities  were  outstanding): 

Ordinary  stock £3,000,000  $15,000,000 

Preference  stock  (5%) 1,000,000  5,000,000 

Debenture  Stock  (5^%) 750,000  3,750,000 

"      (5%) 250,000  1,250,000 

"      (4%) 1 ,000,000  5,000,000 


»> 


Total  capitalization £6,000,000         $30,000,000 

After  paying  all  interest  charges  on  the  Debenture  stock  and  the  dividend 
on  the  Preference  stock,  the  company  declared  from  the  balance  of  earnings  a 
dividend  of  14%  on  the  Ordinary  stock.     This  is  the  regular  rate  of  dividend. 

The  balance  sheet  as  of  June  30,  1913,  showed  Cash,  Stores,  Bills  Receivable 
and  other  Current  Assets  (including  Investments  with  a  market  value  of 
£1,215,852)  to  the  total  of  $12,689,855  (£2,537,971),  as  against  Current 
Liabilities  totalling  $2,402,475  (£480,495).  There  was  a  Reserve  Fund  of 
$10,088,415  (£2,017,685)  and  an  Income  Tax  Reserve  of  $291,275  (£58,255). 

The  main  line  of  the  San  Paulo  Ry.  is  operated  between  Santos,  via  San 
Paulo  to  Jundiahy,  863^2  miles  (gauge  5  ft.  3  in.),  with  a  branch  line  (metre 
gauge)  connecting  the  main  line  with  the  town  of  Bragantina  (47 J^  miles). 
A  metre  gauge  branch  from  Atibaia  to  Piracaia  (19  miles)  was  under  construc- 
tion in  September,  1913.  The  line  from  Santos  to  Sao  Paulo  and  beyond  is 
entirely  double-tracked. 

The  per  mile  earnings  of  this  company  are  the  greatest  of  any  steam  railway 
line  in  South  America  and  probably  of  any  railway  in  either  of  the  American 
continents.  Coffee  is  the  principal  product  handled,  being  carried  from  the 
interior  to  the  port  of  Santos,  which  is  the  nearest  shipping  point  to  the 
important  city  of  Sao  Paulo  (population  over  300,000).  Santos,  the  port,  has 
a  population  estimated  at  75,000  and  Jundiahy  20,000. 

Santos  bears  the  distinction  of  being  the  greatest  coffee  port  in  the  world, 
possesses  excellent  docks,  electric  lighting  plants  and  street  railways  and  is 
a  thoroughly  modern  city.  Sao  Paulo  is  the  second  largest  city  in  Brazil  and 
is  of  great  commercial  importance.  There  are  some  500  factories  in  the 
city  with  a  working  capital  of  $20,000,000  on  which  the  average  dividend 
earned  was  10%  in  1911. 

The  San  Paulo  Ry.  enjoys  a  monopoly  of  the  trade  between  Sao  Paulo  and 
Santos.  The  Government  may  purchase  the  line  in  1927  under  certain  con- 
ditions. The  railway  was  originally  worked  under  a  Government  guarantee 
of  7%  on  £2,650,000  under  this  agreement  which  has  since  been  cancelled 
(there  is  no  longer  any  guarantee).  The  company  retained  profits  up  to  8% 
on  the  above  amount,  all  of  the  balance  being  divided  between  the  Govern- 
ment and  the  railway. 


62 


AND     CENTRAL     AMERICA 
State  of  Bahia  Southwestern  Ry. 

This  company  was  incorporated  September  11,  1908,  to  acquire  a  concession 
granted  by  the  State  of  Bahia,  Brazil,  for  the  construction  of  a  railway  in 
that  State,  with  a  total  length  of  224  miles,  extending  from  Ilheos  to  Con- 
quista,  while  several  branches  are  building  or  projected.  The  enterprise 
carries  a  State  Government  guarantee. 

The  company  had  outstanding  December  31,   1912,  the  following  capital: 

Authorized  Outstanding 

Stock  (Par  £l) *£200,000  *$1, 000,000  £180,757     $1,903,785 

First    Mortgage    6%    bonds 

(Par  £20) 1,350,000       6,750,000  536,680       2,683,400 

*Authorized  Stock  increased  to  £300,000,  July  10,  1913. 

For  the  period  from  March  to  December,  1912,  the  State  of  Bahia  advanced 
the  company  as  guaranteed  interest  £17,928  ($89,640).  The  Receipts  for 
the  same  period  as  per  Accounts  from  Bahia  were  £21,710  ($108,550)  and 
the  Expenses  £21,408  ($107,040). 

The  Gross  Traffic  Receipts  for  the  calendar  years  1912  and  1913  were 
approximately  as  follows: 

1912 $138,777 

1913 161,343 

The  annual  report  of  the  company  for  1912  stated  that  £450,000  had  been 
expended  on  its  property  from  the  date  of  incorporation  to  December  31,  1912. 

The  main  line  of  this  railway  was  completed  from  Ilheos  to  Almada,  20 
miles,  in  June,  1910,  and  to  Itabuna,  17  miles  beyond  in  September,  1911. 
Additional  mileage  has  since  been  completed. 

Cocoa  forms  a  large  portion  of  this  company's  freight  traffic. 


63 


THE     RAILWAYS     OF     SOUTH 


COLOMBIA. 


Colombian  Republic. 

The  following  statistics  showing  the  traffic  and  gross  earnings  of  the  principal 
Colombian  railways  for  1912  are  mostly  taken  from  a  recent  U.  S.  Consular 
trade  report: 

Mileage  Passen-  Freight  Gross 

Railways          operated.  gers.  tonnage,  earnings. 

Antioquia 88  75,010  33,410  $517,696 

Amaga 8  709,758  10,400  97,971 

*Barranquilla 17  186,491  103,280  310,945 

*Col.Rv.&Nav.Co.       65  36,794  46,253  215,407 

Cucuta' 44  58,914  22,802  517,209 

Tachira 87,520  1,780  31,149 

Cauca 53  11,945  24,704  186,324 

*La  Dorada 71  107,741  72,677  445,220 

^Colombian  Nat.  .        82  103,540  45,579  500,174 

Colombian  North..        37  437,451  39,070  261,326 

LaSabana 26  381,957  76,662  283,500 

Southern 18  97,022  36,947  74,899 

♦Santa  Marta 92  180,252  135,698  509,716 

Railways  designated   (*)  are  described  elsewhere. 

Note:     The  mileage  given  above  is  only  approximately  correct. 

The  total  railway  mileage  completed  at  the  close  of  1912  was  approxi- 
mately 645  miles.  No  trunk  lines  have  as  yet  been  established,  nor  is  there 
any  network  of  connecting  lines.  The  Republic  is  extremely  rugged  in  its 
formation,  three  mountain  ranges  crossing  it,  which  makes  railroad  con- 
struction very  difficult.  The  area  of  the  country  is  438,436  square  miles, 
which  is  more  than  equal  to  the  combined  area  of  the  New  England  States, 
the  Middle  Atlantic  States,  and  the  South  Atlantic  States,  West  Virginia 
included.  The  population  in  1912  was  5,472,604.  Colombia's  vast  re- 
sources, both  mineral  and  agricultural,  are  almost  undeveloped,  and  the 
future  of  the  country  should  be  extremely  bright. 

A  brief  summary  of  several  of  the  railroads  not  mentioned  on  the  Table 
Pages  follows: 

Antioquia  R.  R. — This  railroad  was  projected  in  the  80's,  and  is  designed 
to  run  from  Puerto  Berrio  on  the  Magdalena  River,  the  Republic's  principal 
highway  of  commerce,  to  Medellin,  (population  about  70,000),  the  capital 
■of  the  State  of  Antioquia,  about  125  miles.  This  railway,  in  which  a  large 
amount  of  German  capital  has  been  invested,  is  now  practically  completed. 
Its  earnings  at  present  equal  those  of  any  railroad  in  the.  country,  and  will 
■be  greatly  increased  upon  its  reaching  Medellin. 

64 


AND     CENTRAL     AMERICA 

The  Amaga  Ry.  is  a  short  line  being  constructed  to  join  Medellin  with- 
Caldas,  Amaga  and  the  Cauca  River. 

The  Barranquilla  Ry.  &  Pier  Co.'s  property  is  described  elsewhere.  This 
little  railway  forms  part  of  the  route  usually  followed  in  order  to  reach  Bogota, 
the  capital,  and  other  important  points  in  the  interior.  The  most  frequented 
routes  from  the  Carribbean  ports  to  Bogota  are  either  the  Barranquilla  Ry. 
from  Puerto  Colombia  to  Barranquilla,  or  the  Colombia  Ry.  &  Navigation 
Co's.  Ry.  (formerly  the  Cartagena  Ry.)  from  Cartagena  to  Calamar.  The 
mouth  of  the  Magdalena  River  is  not  navigable.  From  Barranquilla  or  from 
Calamar  the  Magdalena  River  is  used  to  La  Dorada,  from  which  point  the 
railway  bearing  that  name  (see  Dorada  Ry.)  has  to  be  taken  to  Puerto 
Beltran,  to  avoid  a  succession  of  rapids  in  the  river.  Then  a  river  voyage  is 
again  necessary  to  Giradot,  where  change  is  made  to  the  Colombian  National 
Rv.  (see  that  company)  which  is  used  to  Facatativa.  At  that  point  junction 
is  afforded  with  the  Sabana  Ry.  running  to  the  capital,  Bogota.  This  ex- 
plains the  reason  for  the  construction  of  the  railways  just  mentioned.  The 
present  journey  from  the  Carribbean  Sea  to  Bogota  requires  fully  ten  day's 
time.  The  Pacific  Coast  is  much  nearer  that  city,  but  the  three  interjacent 
ranges  of  the  Andes  make  the  construction  of  a  railway  between  the  Coast 
and   the   Capital   an   extremely   costly   enterprise. 

The  Cucuta  Ry.  has  outstanding  about  $1,800,000  stock,  all,  or  practically 
all  of  which  is  held  in  Colombia.  Dividends  have  been  paid  on  this  stock  as. 
follows:  1909,  1^%;  1910,  3%;  1911,  3^%;  1912,  4^%;  1913,  4%  and  up- 
wards. This  company  also  has  outstanding  about  £21,600  of  an  original 
issue  of  £120,000  6%  Debentures  (listed  in  London),  the  balance  of  which 
has  been  retired  through  a  sinking  fund.  The  line  operates  from  the  City 
of  Cucuta,  in  Santadar  (near  the  Venezuelan  frontier),  to  Villamizar,  the 
head  of  navigation  on  the  Znlia  River,  which  empties  into  Lake  Maracaibo 
in  Venezuela.  There  is  also  an  extension  from  Villamizar  to  Tachira.  Traffic 
on  this  railroad  was  virtually  suspended  from  1906  to  1908  inclusive,  owing 
to  the  closing  of  the  Zulia  River  by  the  Government  of  Venezuela. 

The  Cauca,  or  the  Pacific  Ry.,  operates  from  the  port  of  Buenaventura 
inland,  to  Cali  (about  103  miles).  The  construction  of  this  road,  but  recently 
completed,  necessitated  a  large  amount  of  tunneling,  bridging,  etc.  The 
valley  of  Cauca,  which  is  reached  by  the  railway,  contains  large  deposits  of 
coal  and  other  minerals.  The  importance  of  this  line,  in  which  it  is  said 
American  capital  is  invested,  will  be  greatly  increased  upon  the  completion 
of  the  Panama  Canal.  The  equipment  used  by  this  railroad  was  largely 
purchased  in  the  United  States. 

The  Sabana  Ry.  is,  as  stated,  part  of  the  through  route  from  the  Magdalena 
River  to  Bogota.  Its  gross  earnings  exceed  $10,000  per  mile,  and  it  is  an 
important  little  road. 

The  Colombian  Southern  Ry.  extends  from  Bogota  southward  to  Sibate, 
through  an  agricultural  country.  It  has  recently  been  purchased  by  the 
Colombian  Government  and  its  coroorate  existence  has  ceased. 

The  Colombian  Northern  Ry.  the  $900,000  (£180,000)  5%  Debentures 
and  $1,500,000  (£300,000)  stock  of  which  are  owned  in  England,  has  paid 
dividends  in  recent  years  approximately  as  follows:  1912-13,  4%;  1911—12, 
3<  ,  ;  1910-11,  2%;  and  1907-8  to  1909-10,  2Y2%  yearly.  This  line  runs  from 
Bogota  northward  to  Nemocon,  and  is  to  be  extended  to  Chiquinoquira, 
about  64  miles  further.     At  Chiquinoquira  it  is  expected  to  meet  the  Great 

6.5 


THE     RAILWAYS     OF     SOUTH 

Northern  Central  Ry.,  a  line  now  running  from  Puerto  Witches  on  the  Mag- 
dalena  River  to  Bucaramanga.  If  plans  materialize  and  if  sufficient  capital 
is  raised,  this  latter  road  is  to  be  built  to  Chiquinoquira.  The  Great  Northern 
Central  Ry.  is  an  English  company,  and  the  concession  for  the  building  of  the 
line  was  granted  in  about  the  year  1896. 

There  is  another  railway  in  the  Republic — The  Tolima  Ry.,  running  from 
Giradot  (on  the  Magdalena  River)  to  Espinal.  This  is  a  government  enter- 
prise. 

Mention  has  heretofore  been  made  of  the  Colombia  Ry.  &  Navigation  Co., 
successor  to  the  Cartagena  Ry.  The  latter  company,  the  control  of  which 
is  held  in  Great  Britain,  met  with  financial  difficulties  and  had  to  be  reor- 
ganized. The  line  is  an  important  one,  and,  it  is  expected,  will  develop 
large  earnings  in  the  near  future. 

The  Congress  of  Colombia  in  November,  1913,  authorized  a  railway  from 
the  Gulf  of  Darien  to  Medellin  in  Colombia.  The  administration  of  Gen. 
Rafael  Reyes  granted  a  concession  to  Mr.  Henry  G.  Granger,  C.  E.,  and  his 
American  associates  for  constructing  this  line,  and  Mr.  Granger's  company 
began  the  work  of  establishing  a  port  on  the  Gulf  of  Darien,  which  he  called 
Ciudad  Reyes,  and  constructed  a  short  stretch  of  track  from  the  sea  into 
the  swampy  lowl  nds,  but  the  company  ceased  all  operations  in  1908. 

The  Government  is  to  make  a  preliminary  survey,  at  its  own  expense,  and 
that  the  Department  of  Antioquia,  of  which  Medellin  is  the  capital,  shall 
send  engineers  to  accompany  those  named  by  the  Government  in  confor- 
mance with  an  ordinance  adopted  by  that  Department  in  1913. 

On  completion  of  the  railway  from  Puerto  Berrio,  on  the  Magdalena  River, 
to  Medellin,  if  the  Department  of  Antioquia  decides  to  construct  the  road 
to  the  Darien  Gulf,  the  National  Government  will  grant  that  Department  a 
subvention  of  $25,000  per  mile  for  the  mileage  constructed,  and  will  also  cede 
in  the  Department  mentioned  in  the  region  through  which  the  road  may 
pass,  250  acres  of  public  land  for  each  kilometer  (0.62  mile)  constructed.  The 
work  may  be  commenced  at  either  end  of  the  line. 

Should  the  Department  of  Antioquia  not  make  use  of  this  privilege  the 
National  Government  is  authorized  in  conjunction  with  the  Department  to 
make  a  contract  with  a  company  that  may  be  formed  therefor,  or  the  National 
Government  may  build  the  road  itself 

A  similar  subvention  is  to  be  granted  to  the  proposed  line  (the  Tunja  Ry.) 
from  Tunga  to  the  Magdalena  River,  provided  this  line  be  constructed  with 
a  gauge  not  less  than  a  yard  wide. 

A  preliminary  survey  is  being  made  now  for  a  firm  who  is  supposed  to 
represent  the  same  British  syndicate  that  built  the  Colombian  National  Ry,. 
of  a  100-mile  line  across  the  savannahs  from  Bogota  to  Tunja.  The  other 
line  from  Tunja  to  the  Magdalena  would  probably  pass  near  Bucaramanga 
and  follow  the  surveys  of  the  partly  constructed  Great  Northern  Eentral  Ry. 
It  is  said  that  this  line  can  be  built  on  a  maximum  2^c  grade  from  the  Mag- 
dalene River  to  Bogota. 

66 


AND     CENTRAL    AMERICA 
Barranquilla  Ry.  &  Pier  Co. 

Avg.  Miles  Avg.  Miles 

Year  Oper.  Gross  Receipts  Year  Oper.  Gross  Receipts 

1911-12  17  $278,007        £55,601  1912-13  17  $351,003        £70,201 

Stock  Outstanding                                                 Debenture  Stock  Outstanding 
June  30,  1913                                                                 June  30,  1913 
Common $1,000,000        |         Debenture  Stock  (6%) $1,000,000 

Capitalization 

Total Per  Mile 

Stock £200,000          $1,000,000  $58,823 

Bonds 100,000               500,000  29,412 

Total 300,000            1,500,000  88,235 

Fixed  Charges  below  include  $10,000  (£2,000)  Depreciation  on  Investments. 

Income  Account  Year  Ending  June  30,  1913 

Average  miles  operated  17. 

Gross  ReceiDts 

Operating  Expenses 

Net  Receipts 

Other  Income 

Total  Net  Income 

Fixed  Charges 

♦Surplus 


Total 



Per  Mile 

£70,201 

$351,003 

$20,647 

31,921 

159,603 

9,388 

*38,280 

191,400 

11,259 

3,141 

15,705 

924 

41,421 

207,105 

12,183 

11,125 

55,625 

3,272 

30,296 

151,480 

8,911 

£6,658 

$33,289 

$1,958 

3,811 

19,054 

1,121 

15,416 

77,082 

4,534 

6,036 

30,178 

1,775 

Operating  Expenses 

Maintenance  of  Way 

Maintenance  of  Equipment 

Traffic  and  Transportation  Expenses 

General  Expenses 

Ratio  of  Operating  Expenses  to  Gross  Receipts  45.5  per  cent. 

*As  against  £38,725  as  shown  in  annual  report  of  the  Company,  see  explanation  below. 

Other  Income  above  includes  $2,225  (£445)  difference  between  the  Net  Earnings  as  shown 
in  the  annual  report  of  the  Company  and  the  Net  Earnings  as  shown  above.  In  this  table 
the  rate  of  $1.00  U.  S.  Gold  to  $100  Colombian  currency  is  used  and  in  the  annual  report 
a  slightly  different  basis.  In  Colombian  currency  the  Gross  Receipts  for  1912-13  were 
$35,100,265,  against  $27,800,669  for  1911-12. 

Appropriation  of  Gross  Income 

1912-13 

For  Maintenance  Expenses 14.3% 

For  Traffic,  Transportation  and  General  Expenses 29.2% 

For  Fixed  Charges 15.2% 

For  Surplus 41.3% 

100.0% 

NOTES 

This  company  operates  a  line  of  railway  from  Savanilla  to  Barranquilla, 
about  seventeen  miles.  The  former  city  is  an  important  port  on  the  Caribbean 
Sea,  while  Barranquilla  is  the  port  for  the  Magdalena  River,  the  principal 
highway  of  commerce  for  Colombia.  As  the  Magdalena  River  is  not  navigable 
at  the  mouth  this  railway  operating  as  it  does  between  the  two  ports,  is, 
though  a  small  line,  of  considerable  importance.  This  Company  also  owns  a 
valuable  pier,  which  is  being  enlarged  and  extended  in  order  to  meet  the 
ever  increasing  traffic. 

The  Republic  of  Colombia  had  the  right  to  purchase  the  property  of  this 
company  "at  a  fair  valuation,"  in  June,  1913,  but  did  not  exercise  that  right. 
In  June,  1923,  the  Government  may  purchase  the  property  "at  a  fair  valuation, 
less  20%,"  and  in  1933,  "at  a  fair  valuation,  less  40%." 

The  Barranquilla  Ry.  &  Pier  Co.  had  outstanding  June  30,  1913,  $1,000,000 

67 


THE     RAILWAYS     OF     SOUTH 

(£200,000)  stock  divided  into  20,000  shares  of  £10  each,  (see  following  para- 
graph), also  $500,000   (£100,000)    Debenture   Stock. 

Dividends  of  5%  each  were  paid  on  the  stock  in  November,  1912,  and  in 
November,  1913.  In  addition  to  the  5%  dividend  paid  in  November,  1913, 
a  special  bonus  of  25%  (£50,000)  stock  was  paid  to  the  shareholders.  In 
addition,  $250,000  (£50,000)  and  $50,000  (£  10,000)  were  appropriated  to 
Reserve   Account    and    Renewal    Account. 

On  June  30,  1913,  the  balance  sheet  showed  Current  Assets,  Stores,  Invest- 
ments, etc.,  £96,878,  and  Current  Liabilities,  £9,170. 

The  Gross  Receipts  of  the  Company,  as  shown  in  the  annual  report  of  the 
Company,  included  $1,629, 133  Colombian  (equal  to  $16,291  American)  account 
of  Pier  dues.  The  rate  of  exchange  between  Colombia  and  the  United  States 
is  about  $100  Colombian  to  $1  American  Gold. 


Colombian  National  Ry. 


Receivers  were  appointed  for  this  company  in  1912,  and  remained  in  office  until  June  24, 
1913. 

Avg.  Miles  Avg.  Miles 

Year  Oper.  Gross  Receipts  Year  Oper.  Gross  Receipts 

1910  86  $308,215  £61,643  1912  86  *$500,174     *  £100,035 

1911  86  382,176  76,435        | 

*Gross  Earnings  for  1913  were  approximately  $635,000  (£127,000). 

Stock  Outstanding  Bonds  Outstanding 

December  31,  1912  December  31,  1912 

Common $4,500,000        |        *Debentures  (6%) $7,400,000 

♦Interest  on  a  majority  of  these  Debentures  is  paid  by  the  Government  of  Colombia 
under  guaranty  agreements  (see  Notes).  The  Balance  Sheet  as  of  December  31,  1912, 
showed  $574,918  (£114,984)  Debenture  Interest  unpaid  and  accrued.  On  December 
31,  1912,  $1,928,443  (£385,689)  was  due  the  Government  of  Colombia  (see  Notes). 

Capitalization 

Total Per  Mile 

Stock £900,000  $4,500,000  $52,326 

Debentures 1,480,000  7,400,000  86,046 

Total 2,380,000  11,900,000  138,372 

Fixed  Charges  below  include  $444,000  (£88,805)  for  interest  on  Debentures.  This 
interest  was  not  actually  paid  by  the  company  but  was  paid  by  the  Government.  This 
sum  remains  due  the  Government  with  compound  interest  at  6%  per  annum. 

Income  Account  Year  Ending  December  31,  1912 

Average  miles  operated,  86. 

Total Per  Mile 

Gross  Receipts £100,035  $500,174  $5,816 

Operating  Expenses 52,799  263,994  3,070 

Net  Receipts 47,236  *23,680  2,746 

Other  Income 31  154  2 

Total  Net  Income 47,267  236,334  2,748 

Fixed  Charges 109,919  549,593  6,391 

Deficit 62,652  313,259  3,643 

Operating  Expenses 

Maintenance  of  Way £19,277  $96,383  $1,121 

Maintenance  of  Equipment 6,685  33,423  389 

Traffic  Expenses 16,324  81,623  949 

General  Expenses  and  Administration 10,513  52,565  611 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  52.8  per  cent. 

*As  compared  with  (£17,881)  $89,405  in  1911. 

Appropriation  of  Gross  Income 

1912 

For  Maintenance  Expenses 26.0% 

For  Traffic,  Transportation  and  General  Expenses 26.8% 

For  Fixed  Charges 109.8% 

For  Surplus Deficit 

68 


AND     CENTRAL     AMERICA 

NOTES 

No  dividends  have  ever  been  paid  on  the  $4,500,000  (£900,000)  ordinary 
stock  (par  £1)  of  this  Company. 

The  First  Mortgage  and  Second  Mortgage  6%  Debentures  are  callable  at 
110  and  are  payable  at  110  in  case  of  liquidation.  They  are  secured  by  a  first 
and  second  charge  on  the  property  of  the  company.  $1,000,000  (£200,000)  and 
$2,000,000  (£400,000)  respectively  of  these  two  classes  of  Debentures  are  out- 
standing, including  £300,000  Second  Debentures  issued  to  contractors.  The 
Government  owns  a  large  majority  of  these  Debentures  (see  below),  also 
$1,500,000  (£300,000)  or  one-third 'of  the  ordinary  stock. 

The  Third  Mortgage  6%  Debentures,  $2,150,000  (£430,000)  of  which  are  out- 
standing, are  a  third  charge  on  the  property  and  are  secured  by  a  Government 
guarantee  of  3%  of  the  customs  receipts  of  Colombia.  These  Debentures  are 
payable  at  par  in  case  of  liquidation.  They  were  sold  in  1908,  being  offered  for 
subscription  at  81.  A  Sinking  Fund  is  to  be  provided  out  of  Net  Income  of 
the  Company. 

The  Fourth  Mortgage  6%  Debentures,  $2,250,000  (£450,000)  of  which  are 
outstanding,  are  secured  by  4%  of  the  customs  receipts  of  Colombia,  any  de- 
ficiency to  be  made  up  from  Revenues  of  the  Republic.  These  bonds  were 
offered  at  80. 

The  coupons  due  July,  1910,  on  the  Third  and  Fourth  Mortgage  Debentures 
were  not  paid  until  January,  1911.  Since  that  time  payments  have  been  made 
when  due  in  all  instances  from  Government  guarantees.  The  Company 
having  been  unable  to  meet  interest  on  the  First  and  Second  Debentures,  Re- 
ceivers were  appointed  early  in  1912.  The  Government  took  the  matter  up 
and  settled  with  the  Second  Debenture-holders,  whereupon  both  Receivers 
were  discharged  June  24,  1913.  The  Republic  of  Colombia  has  offered  its  own 
bonds  in  exchange  for  these  Debentures.  To  October  1,  1913,  about  80%  of 
the  Debentures  had  been  exchanged.  The  Colombian  National  Ry.  has 
notified  the  Government  of  its  ability  to  undertake  in  future  the  payment 
of  interest  on  the  First  and  Second  Debentures.  It  is  expected  that  the  Rail- 
way will  soon  be  able  to  relieve  the  Government  of  the  payment  of  the  £52,- 
800  annual  interest  on  the  Third  and  Fourth  Debentures. 

On  December  31,  1912,  the  Railway  Co.  owed  the  Colombian  Government 
£385,688  as  against  £290,103  December  31,  1911,  the  increase  being  due  to 
the  payment  by  the  Government  of  interest  on  Debentures  under  their 
guarantees  (£88,000  with  compound  interest  at  6%).  The  balance  sheet  of 
the  railway  also  showed  £114,984  Debenture  Interest  Unpaid  and  Accrued. 

The  Company  upon  the  completion  of  the  railway  was  given  a  land  grant 
of  about  123,000  acres. 

The  Colombian  National  Ry.  extends  from  a  junction  with  the  Sabana 
Ry.  running  from  Bogota  to  the  Port  of  Girardot  on  the  Magdalene  River 
(86  miles).     The  two  railways  are  of  a  different  gauge. 

69 


THE     RAILWAYS     OF     SOUTH 
Colombia  Ry.  &  Navigation  Co. 

(Successor  to  the  Cartagena  Ry.) 

NOTES. 

This  company  has  been  organized  as  the  successor  to  the  Cartagena  Ry.  Co. 
receivers  for  which  were  appointed  in  April,  1912.  The  Colombia  Ry.  &  Navi- 
gation Co.  is  to  create  new  6%  Prior  Lien  Bonds  to  the  amount  of  £250,000;  of 
which  £125,000  are  to  be  issued  immediately,  to  be  a  first  charge  on  the 
properties  of  the  old  company's  (the  Cartagena  Ry.)  railroad  and  steamship 
lines.  Holders  of  the  old  Debentures  of  the  steamship  lines  (Colombia  Navi- 
gation Co.)  have  agreed  to  give  up  their  first  charge  in  favor  of  the  new  Prior 
Lien  Debentures,  but  are  on  the  other  hand  to  become  a  second  charge 
(also  subject  to  the  new  Prior  Lien  Debentures)  on  certain  properties  of 
the  railway.  The  railway  Debentures  will  continue  to  bear  interest  at  5% 
per  annum  as  before,  but  interest  is  to  be  dependent  on  income  and  is  to  rank 
as  to  2%  immediately  after  the  Navigation  Lines'  Debenture  interest  and  3% 
after  provision  has  been  made  for  a  renewal  and  repair  fund  of  £5,000  per 
annum,  and  for  the  Navigation  Lines'  Debenture  redemption  fund  of  £6,399 
which  comes  into  operation  in  1918;  interest  is  to  be  paid  in  cash  as  far  as  the 
profits  allow,  and  the  balance  by  the  issue  of  deferred  interest  warrants,  and 
such  deferred  interest  warrants  are  also  to  be  issued  for  arrears  up  to  March 
31,  1913,  and  for  the  coupon  due  September  30,  1913.  The  warrants  are  re- 
deemable out  of  profits.  A  redemption  fund  to  retire  the  Cartagena  Ry. 
Debentures  will  begin  to  operate  from  July,  1919,  although  if  profits  are 
sufficient  after  all  interest,  repairs,  renewals,  etc.,  have  been  disposed  of,  one- 
half  of  all  profits  after  all  charges,  (interest,  sinking  fund,  renewals,  etc.)  have 
been  disposed  of  will  go  to  the  Railway  Debenture  renewal  fund  and  one- 
half  to  the  shareholders,  whose  £750,000  stock  will  not  be  otherwise  affected 
by  the  reorganization. 

The  railway  is  about  65  miles  in  length  and  extends  from  the  port  of  Caratega 
on  the  Caribbean  Sea  to  Calamar  on  the  Magdalena  River.  The  Company 
has  a  concession  from  the  government  extending  until  1994,  although  the 
government  has  the  right  to  purchase  the  property  after  1944  under  certain 
conditions.  The  company  owns  docks  and  terminals  at  Cartagena  which  are 
of  considerable  value.  The  steamer  lines  are  operated  on  the  Magdalena 
River. 

Gross  earnings  for  several  years  (including  steamer  lines)  follow: 

1908 £133,298  $666,490 

1909  (6  months) 59,458  277,290 

1909-10 269,243  1,346,215 

1910-11 277,223  1,386,115 

1911-12 278,870  1,394,350 

1912-13 333,944  1,669,720 

The  Capitalization  of  the  new  company  will  consist  of:  £125,000  6l/c  Prior 
Lien  Debentures;  £750,000  (Railway)  5%  (Income)  Debentures;  £750,000 
stock,  and  the  Steamer  Lines  Debentures. 

70 


AND     CENTRAL     AMERICA 
Dorada  Extension  Ry. 

Avg.  Miles  Avg.  Miles 

Year  Oper.  Gross  Receipts  Year  Oper.  Gross  Receipts 

1911  71  $355,025  £71,005        |        1912  71  *$445,220  £89,044 

Note:  Gross  Receipts  for  1913  were  $514,000  (£102,800). 

Stock  Outstanding  Debenture  Stock  Outstanding 

December  31,  1912                                                           December  31,  1912 
Ordinary $1,750,000  Debenture  Stock  (6%) $1,702,500 

Capitalization 

Total Per  Mile 

ctock                                                                             ....          £350,000          $1,750,000  $24,648 

Debenture  Stock. . '.'.'.'.'.'.'.'.'.'.'... 340,500            1,702,500  23,979 

Total                           690,500            3,452,500  48,627 

Fixed  Charges  below  include  $10,183  (£2,037)  paid  account  of  Sinking  Fund  and  $5,000 
(£1,000)   Redemption  of  Honda  Municipal  Subvention. 

Income  Account  Year  Ending  December  31,  1912 

Average  miles  operated  71 

Gross  Receipts  (1913,  £102,800) 

Operating  Expenses 

Net  Receipts 

Other  Income 

Total  Net  Income 

Fixed  Charges 

♦Surplus ••  •  •  ■  • 


Total- 

Per  Mile 

£89,044 

$445,220 

$6,271 

34,655 

173,276 

2,441 

54,389 

271,944 

3,830 

1,770 

8,853 

125 

56,159 

280,797 

3,955 

23,751 

118,755 

1,673 

32,408 

162,042 

2,282 

es 

£10,332 

$51,660 

$728 

7,541 

37,707 

531 

9,593 

47,965 

676 

7,189 

35,944 

506 

Operating  Expenses 

Maintenance  of  Way 

Locomotive  Department 

Traffic,  Transportation  and  Telegraph  Expenses- 
General  Expenses 

Ratio  of  Operating  Expenses  to  Operating  Revenues  38.9  per  cent. 

♦This  Surplus  before  deducting  $50,000  (£10,000)  set  aside  to  meet  Discount  on  Second 
Mortgage  bonds  to  be  issued  at  92 Y2  (see  Notes),  $40,000  (£8,000)  credited  to  Rolling 
Stock  Renewal  Account  and  $10,000  (£2,000)  credited  to  Reserve. 

Appropriation  of  Gross  Income 

1912 

For  Maintenance  and  Locomotive  Expenses 19.7% 

For  Traffic,  Transportation  and  General  Expenses 18.5% 

For  Fixed  Charges 26.1% 

For  Surplus 35.7% 

100.0% 

NOTES 

The  Ordinary  Stock  of  this  company,  of  which  $1,750,000  (£350,000)  is 
authorized  and  outstanding,  received  in  1913  from  the  earnings  for  the  calendar 
year  1912  a  dividend  of  4%  as  against  2j^%  paid  from  the  previous  year's 
earnings.     The  par  value  of  the  stock  is  £10. 

The  Debenture  Stock  of  the  company  bears  interest  at  the  rate  of  6%  per 
annum.  $1,750,000  (£350,000)  of  this  Debenture  Stock  is  authorized  and 
outstanding  of  which  $57,500  (£11,500)  had  been  redeemed  by  a  voluntary 
Sinking  Fund  prior  to  June,  1913. 

The  Stockholders  have  ratified  an  issue  of  £150,000  Second  Mortgage  bonds, 
bearing  6%  interest  and  repayable  in  five  years.  These  bonds  have  been  sold 
at  92^2)  the  proceeds  to  be  used  to  build  an  aerial  ropeway  between  Mariquita, 
a  station  on  the  Dorada  Extension  Ry.,and  Manizales,  a  town  of  some  34,000 
inhabitants  and  the  centre  of  a  large  coffee  growing  district.  The  company 
has  authorized  the  setting  aside  of  $50,000  (£10,000)  from  the  Surplus  of  1912, 

71 


THE     RAILWAYS     OF     SOUTH 

to  meet  the  discount  on  this  Debenture  issue.  The  company  which  is  to 
construct  the  new  line  is  to  be  known  as  the  Dorada  Ry.  (Ropewav  Extension) 
Ltd. 

This  railway  was  constructed  in  order  to  afford  a  means  of  transportation 
around  the  rapids  of  the  Magdalene  River,  which  rapids  make  navigation 
impossible  for  some  distance. 


Santa  Marta  Ry. 


Year  Average  Miles  Operated  Gross  Surplus 

*1912  f92  $489,630  $4,545 

*Year  ending  September  30;  annual  report  for  year  ending  September  30,  1913,  not  re- 
ceived to  date  of  going  to  press. 

t80  miles,  of  which  is  owned  by  the  company. 

Stock  Outstanding  Bonds  Outstanding 

Sept.  30,  1912  Sept.  30,  1912 

♦Ordinary $1,000,000  Debentures  (6%) $952,000 

Preferred  (7%) 795,800 

*$250,000  (£50,000)  of  the  above  Ordinary  Share  Capital  does  not  appear  on  the  Com- 
pany's Register  pending  the  completion  of  certain  legal  formalities. 

Capitalization. 

Total 

Stock £359,160  $ 

Bonds 190,400 

Total 549,560 

Income  Account  Year  Ending  September  30,  1912 

Average  miles  operated,  92 

Total 

Gross  Receipts £97,926 

Operating  Expenses 80,512 

Net  Receipts 17,414 

Total  Net  Income 17,414 

Fixed  Charges 16,506 

^Surplus 908 

Operating  Expenses 

Maintenance  of  Way £29,274 

Maintenance  of  Equipment 7,715 

Traffic  and  Transportation  Expenses 33,108 

General  Expenses 10,415 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  8.22  per  cent. 

Appropriation  of  Gross  Income 

1912 

For  Maintenance  Expenses 37.8% 

For  Traffic,  Transportation  and  General  Expenses 44.4% 

For  Fixed  Charges 16.9% 

For  Surplus 0.9% 

100.0% 

NOTES. 

This  railway  runs  from  the  Caribbean  port  of  Santa  Marta  inland  to  the 
town  of  Fundacion  on  the  river  of  the  same  name.  The  line  traverses  through 
rich  banana  lands  and  is  being  extended  into  new  territory  capable  of  raising 
large  quantities  of  fruit.  The  harbor  of  Santa  Marta  is  thirty  feet  in  depth 
and  has  accomodation  for  large  sized  steamers. 

The  preference  stock  is  entitled  to  7%  per  annum  in  priority  to  the  ordinary 

72 


51,795,800 

952,000 

2,747,800 

Per  Mile 

$19,519 

10,348 

29,867 

1912 

Per  Mile 

$5,322 

4,376 

946 

946 

897 

49 

$489,630 

402,560 

87,070 

87,070 

82,530 

4,540 

$146,370 

38,575 

165,540 

52,075 

$1,591 

420 

1,799 

566 

AND     CENTRAL     AMERICA 

stock.     No  dividends  are  being  paid.  The  amounts  of  capital  authorized  and 
outstanding,  September  30,  1912,  were  as  follows: 

Authorized  Outstanding 

Ordinary  Shares  (par  £10) £200,000  £200,000 

Preferred  Shares  (par  £10) 400,000  159,160 

*First  Charge  Debentures *190,400 


•l 


'Bear  interest  at  6%;  an  additional  £9,100  of  these  Debentures  had  been 
redeemed  and  cancelled  prior  to  September  30,  1912.  The  outstanding 
amount  had  been  reduced  to  about  £188,000  prior  to  December  31,  1913. 


73 


THE     RAILWAYS     OF     SOUTH 


ECUADOR. 


Ecuador,  in  spite  of  being  the  smallest  of  the  West  Coast  Republics  south 
of  Panama,  has  an  area  large  enough  to  comprise  all  of  New  England,  New 
York  and  New  Jersey.  Within  its  115,000  square  miles  are  approximately 
1,400,000  inhabitants,  a  large  majority  of  whom  are  Indians  or  of  mixed 
races.  Its  capital,  Quito,  with  a  population  of  perhaps  85,000,  is  in  the 
heart  of  the  Andean  Plateau,  9,375  feet  above  the  Pacific  Ocean.  Its  age 
far  outdates  the  Spanish  conquest  (1534)  at  which  time  it  was  one  of  the 
great  centers  of  the  Inca  civilization.  It  is  to-day  the  most  important  city 
in  the  Republic.  Guayaquil,  the  chief  port,  has  an  estimated  population 
of  over  70,000  and  is  located  about  60  miles  from  the  Sea,  on  the  River  Guay- 
aquil, near  where  this  stream  empties  into  the  Gulf  bearing  the  same  name. 
It  has  been  noted  for  years  on  account  of  its  unhealthfulness,  although  this 
condition  will  be  greatly  improved  by  the  sanitation  of  the  port  which  is  to 
be  carried  out  by  the  J.  G.  White  Co.  in  the  immediate  future.  This  engineer- 
ing firm  will  drain  the  marshes  and  give  to  the  City  a  comprehensive  water 
supply.  Although  Guayaquil  is  the  westernmost  city  of  any  importance 
in  South  America  it  is  almost  on  a  parallel  line  south  of  the  Allegheny  Moun- 
tains. The  Republic  is  in  three  divisions:  the  lowlands  west  of  the  Andes, 
the  mountainous  plateau  of  the  interior,  on  which  Quito  is  located,  and  the 
vast  Oriente  to  the  east.  The  latter,  which  contains  more  than  half  of  the 
country's  area,  is  very  thinly  settled,  in  many  places  practically  unex- 
plored. 

In  1911  (latest  data  obtainable)  the  foreign  trade  of  Ecuador  was  estimated 
at  $21,690,476,  including  $13,666,371  exports  and  $8,024,105  imports. 

The  only  important  railway  in  the  Republic  is  the  Guayaquil  &  Quito 
Ry.  (which  see)  extending  from  the  former  port  to  the  capital.  The  railway 
which  is  owned  by  an  American  company  is  288  miles  in  length.  En  route 
to  Quito,  it  climbs  to  an  elevation  of  11,841  feet,  and  passes  through  Alausi 
(population  6,000),  Riobamba  (population  18,000),  Ambato  (population 
10,000),  etc.  This  enterprise  was  first  started  in  1872,  and  prior  to  1876 
the  portion  of  the  existing  line  between  Yaguachi  (about  14  miles  from  Guaya- 
quil) to  Barraganetal  (total  about  29  miles)  was  completed.  During  the 
eighties  the  road  was  continued  on  for  a  few  miles,  Sibamba  being  the  goal 
in  view,  while  Yaguachi  was  connected  by  rail  to  Duran  (opposite  Guayaquil). 
Finally,  in  1908,  the  road  was  completed  to  Quito  and  may  at  some  future 
date  be  extended  to  Ybarra.  The  undertaking  was  a  colossal  one  rivalling 
Meiggs'  famous  Oroya  or  Peruvian  Central  Ry.  in  the  Republic  of  Peru. 
Enormous  precipices  and  wide  rivers  had  to  be  crossed  and  the  grade  in 
places  was  extremely  heavy.  The  railway  has  had  financial  difficulties  to 
contend  with  from  the  start.  Its  bonded  debt  bears  the  guarantee  of  the 
Government,  and  comprises  an  amount  of  $2,177,000  in  6%  Prior  Lien  bonds 
of  the  Guayaquil  and  Quito  Ry.,  an  amount  of  $10,808,000  in  5%  Mortgage 
Bonds  of  the  same  undertaking,  and  4%  Salt  Bonds  to  an  amount  of  $919,890. 
The  Salt  Bonds  have  been  brought  up  to  date  in  respect  of  amortization  and 
sinking  fund.  The  interest  on  the  Prior  Lien  Bonds  is  also  being  regularly 
paid,  and  the  coupons  of  the  Mortgage  Bonds  have  been  paid  up  to   Janu- 

74 


AND     CENTRAL     AMERICA 

ary,  1912.     The  position  is  an  improving  one,   and   the  outlook   for  the  rail- 
way's future  is   better  than  ever  before. 

An  important  railway  is  the  Bahia  line,  which  has  been  constructed  to 
serve  the  Manabi  cocoa  district.  Another  line  is  the  Central  Ry.  of  Ecuador, 
to  connect  Santa  Ana  with  the  port  of  Manta,  and  this  is  proving  a  great 
boon  to  the  vegetable  ivory  and  coffee  districts  of  Manabi.  The  provisional 
programme  of  railway  construction  includes  a  considerable  mileage  designed 
to  open  up  the  coal  district  in  Biblian,  the  petroleum  area  at  Salinas,  and 
other   centres. 

At  the  end  of  the  year  1912  there  were  in  operation  in  Ecuador  396  miles 
of  railroad;  423  miles  were  in  course  of  construction,  and  440  miles  under 
consideration.  Of  the  road  in  operation,  288  miles  belong  to  the  Guayaquil 
&  Quito  Ry.  Co.;  48  miles  to  the  Compagnie  Francaise  de  Chemins  de  Fer 
de  l'Equateur,  a  French  company;  36  miles  to  the  Central  Ry.  Co.  of  Ecuador, 
and  24  miles  are  owned  by  the  Government.  Of  the  mileage  in  course  of 
construction  249  miles  belong  to  the  above-named  French  company,  93 
miles  to  the  municipality  of  Guayaquil,  73  miles  to  the  Government,  and 
eight  miles  to  the  Central  Ry.  Co.  of  Ecuador.  All  the  road  in  project  is  in 
the  hands  of  the  Government. 


Central  Ry.  of  Ecuador. 

This  company  was  incorporated  to  construct  a  line  of  railway  between  the 
Port  of  Manta,  Ecuador  and  Santa  Ana  (about  44  miles).  The  company  has 
issued  $500,000  (£100,000)  stock  and  $1,000,000  (£200,000)  6%  bonds. 

Work  was  commenced  in  1911  and  it  was  excepted  that  the  line  would  be 
completed  by  1914.     The  railway  reverts  to  the  government  after  50  years. 


Guayaquil  &  Quito  Ry. 

This  company  (incorporated  1897)  operates  a  line  of  railway  (completed 
1908)  from  Duran,  opposite  Guayaquil,  the  chief  port  of  Ecuador,  to  Quito 
the  capital,  with  branches  (total  about  288  miles).  A  bridge  between  Duran 
and  Guayaquil  is  projected.  The  company  has  outstanding  approximately 
$5,250,000  7%  cumulative  preferred  stock  and  $7,033,000  common  stock  of 
which  latter  class  of  stock  49%  was  originally  issued  to  the  Government. 
No  dividends  have  been  paid.  The  bonded  debt  consists  of:  (1)  Approximately 
$2,177,000  6%  Prior  Lien  Sinking  Fund  bonds  due  1930,  guaranteed  principal 
and  interest  by  the  Government  of  Ecuador  on  which  full  interest  is  being 
paid;  (2)  $10,808,000  First  Mortgage  Gold  5%  (formerly  6%)  bonds  due  1932, 
secured  by  a  lien  subject  to  the  Prior  Lien  bonds  on  all  the  custom  duties,  and 
guaranteed  principal  and  interest  by  the  Government  of  Ecuador.  The  four 
coupons  on  these  bonds  due  July,  1907,  to  January,  1909,  were  exchanged 
for  $90  in  4%  "  Salt  "  bonds  (see  following).  The  payment  of  the  July,  1910, 
coupon  and  of  subsequent  coupons,  was  deferred.  The  July,  1910,  coupon 
and  the  two  coupons  due  in   1911  have  since  been  paid  (July,   1911,  coupon 

75 


THE     RAILWAYS     OF     SOUTH 

paid  September,  1913);  (3)  4%  Salt  bonds  secured  on  the  Republic's  salt  mon- 
opoly. Sinking  Fund  of  4%  is  applied  to  purchasing  bonds  at  or  below  par. 
The  original  issue  was  $l,105,3SO.  The  bondholders  have  the  right  to  appoint 
three  of  the  eleven  directors. 

The  Gross  Earnings  of  this  company,  as-reported,  have  been  approximately 
as  follows:  1906-7,  $468,969;  1907-8,'  $539,589:  1908-9,  $759,493;  1910-11, 
$885,718;     1911-12,     $1,200,844;    1912-13,  $1,002,181. 

The  gauge  of  this  railway  is  3  ft.  6  in.  The  equipment  consists  of  17  loco- 
motives, 19  passenger  coaches,  109  freight  cars,  2  steamers  and  4  lighters. 

It  is  expected  that  following  the  sanitation  of  the  Port  of  Guayaquil,  to  be 
carried  out  by  J.  G.  White  &  Co.  of  London  and  New  York,  the  earnings  of 
this  road  will  show  a  large  increase  owing  to  the  additional  shipping. 


76 


AND     CENTRAL     AMERICA 


GUIANA. 


British,  Dutch  and  French  Guiana. 

Demerara  or  British  Guiana  is  of  a  peculiar  physical  formation.  The  flat 
coastal  land  whereon  are  located  Georgetown  (the  capital),  Berbice,  New 
Amsterdam  and  practically- all  of  the  important  towns  in  the  Colony  is  sep- 
arated from  the  interior  by  a  considerable  tract  of  low  swampy  country, 
through  which  no  railroad  has  ever  been  built.  As  the  colony  has  several 
navigable  rivers,  a  railway  to  the  interior  will  likely  be  long  delayed.  The 
Demerara  Ry.,  an  old  established  line,  extending  from  Georgetown  to  New 
Amsterdam,  is  the  most  important  in  the  Colony.  There  is  another  railway 
(a  small  one)  located  in  the  interior,  extending  from  a  point  60  miles  up  the 
Demerara  River  to  the  Essequibd  River  (about  19  miles).  This  railway 
forms  part  of  the  route  to  the  gold  mines  of  the  interior  and  is  operated  by 
Messrs.  Sprostons,  Ltd.,  who  control  the  local  steamer  lines  of  the  Colony. 
British  Guiana  is  a  country. rich  in  resources,  and  its  interior  is  capable  of 
vast  development,  about  six-sevenths  of  the  90,000  square  miles  comprising 
the  Colon  being  forest-clad. 

Railway  communication  in  the  thinly  settled  Colony  of  Dutch  Guiana  or 
Surinam  is  limited  to  a  single  line  extended  from  Paramaribo,  the  capital,  into 
the  interior,  built  to  carry  the  plantation  products  of  the  country  back  from 
the  coast  and  to  a  few  short  spurs  to  the  various  estates.  The  country  has 
an  area  of  41,060  square  miles  and  a  population  of  from  80,000  to  90,000,  of 
which  35,000  persons  are  found  in  the  capital.  The  products  of  the  land 
consist  mainly  of  gold,  sugar,  timber,  balata,  cocoa  and  bananas. 

There  are  no  railways  (as  far  as  the  writer  is  aware)  in  French  Guiana 
(Cayenne).  The  Colony,  which  is  a  French  penal  settlement,  though  probably 
rich  in  resources,  is  but  little  developed. 


77 


THE     RAILWAYS     OF     SOUTH 
Demerara  Ry. 

Avg.  Miles  Avg.  Miles 

Year          Oper.          Gross  Surplus  Year           Oper.          Gross              Surplus 

1908-9           75           $277,964  $157,221  1911-12          75           $248,564           $123,275 

1909-10        75             260,457  137,871  1912-13       *75             237,505             102,246 

1910-11         75             252,303  129,293 

♦Demerara  Ry.  (21  miles);    Berbice  Ry.  (39  miles);    West  Coast  Ry.  (15  miles). 

Stock  Outstanding  Debenture  Stock  Outstanding 

June  30,  1913  June  30,  1913 

Ordinary $825,000  Debenture  Stock  (4  %) $350,000 

Pfd.  Ordinary  (3*2%) 161,000 

Preference  (7  %) 575,000 

Extension  P'fce  (4%) 1,562,500 

The  method  of  sub-dividing  Operating  Expenses  as  shown  below  is  somewhat  different 
from  the  method  used  in  the  annual  report  of  the  Company. 

Capitalization 

Stock  ( £624,700) $3,123,500 

Debenture  Stock  ( £70,000) 

Total 3,473,500 

Income  Account  Year  Ending   June  30, 

Average  miles  operated,  75. 


-Total 


Total 
$3,123,500 
350,000 
3,473,500 

1913 

Per  Mile 

$41,646 

4,667 

46,313 

Per  Mile 

$3,167 

2,450 

717 

833 

1,550 

186 

1,364 

Per  Mile 

$757 

257 

916 

530 

$237,505 

183,759 

53,746 

62,500 

116,246 

14,000 

102,246 

$56,811 
19,244 
68,672 
39,032 

Gross  Receipts £47,501 

Operating  Expenses 36,751 

Net  Receipts 10,750 

Other  Income  (Gov't  Subsidy) 12,500 

Total  Net  Income 23,250 

Fixed  Charges 2,800 

Surplus 20,450 

Operating  Expenses 

Total 

Maintenance  of  Way £11,362 

Maintenance  of  Equipment 3,849 

Traffic  and  Transportation  Expenses 13,734 

General  Expenses 7,806 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  77.4  per  cent. 

Appropriation  of  Gross  Income 

1912-13  1911-12 

For  Maintenance  Expenses 25.3  %  22.0  % 

For  Traffic,  Transportation  and  General  Expenses 35.9  %  33.9  % 

For  Fixed  Charges 4.7  %  4.5  % 

For  Surplus 34.1  %  39.6  % 

100.0%  100.0% 

NOTES 

This  railway,  which  was  incorporated  about  67  years  ago,  is  located  in  the 
Colony  of  British  Guiana,  South  America.  The  main  line  extends  from 
Georgetown,  the  capital,  to  New  Amsterdam,  on  the  Berbice  River  (60.5 
miles).  The  company  also  operates  a  line  known  as  the  West  Coast  Ry. 
extending  from  Georgetown  westward  (15  miles).  This  latter  line  is  to  be 
extended  in  the  immediate  future  to  Parika,  a  town  located  on  the  Essequibo 
River.  An  extension  from  New  Amsterdam  to  the  border  of  Dutch  Guiana 
is  projected. 

The  company  has  outstanding  £70,000  4%  Debenture  Stock  (issued  in 
1901)  and  various  classes  of  Preference  and  Ordinary  Stocks  as  shown  on  the 
table  page.     The  dividend,  £12,500  on  the   £312,500   Extension  Preference 

78 


AND     CENTRAL    AMERICA 

Stock  issued  1896,  is  equal  to  the  amount  annually  received  from  the  Govern- 
ment of  British  Guiana  as  a  subsidy.  The  Ordinary  Stock  was  largely  issued 
in  the  year  1852. 

The  company  has  regularly  paid  dividends  (cumulative)  on  its  Preference 
Shares  (issued  in  1861)  for  a  number  of  years,  except  for  one  period  of  four 
years  (since  paid  off  in  stock.  See  next  paragraph).  Dividends  are  paid 
semi-annually.  Dividends  on  the  Ordinary  Stock  since  1908  have  been  as 
follows:  1908-9,  3%;  1909-10,  3%;  1910-11,  3%;  1911-12,  \Y2%  (for  the 
first  half  year);  1912-13,  none.  The  passing  of  the  Ordinary  Stock  dividend 
was  due  to  loss  in  earnings,  due  to  a  drought  stated  to  have  been  the  most 
severe  in  living  memory.  The  receipts  for  the  calendar  year  1912  were  the 
lowest   since    1869. 

The  Preferred  Ordinary  Stock  which  is  entitled  to  and  receives  dividends 
°f  3H%  per  annum,  was  issued  in  the  year  1908,  to  holders  of  the  7%  Prefer- 
ence Shares  in  lieu  of  deferred  dividends  covering  a  period  of  four  years. 

The  results  from  the  operations  of  the  three  lines  mentioned  above  were 
as  follows: 

Gross 

Miles          Receipts  Expenses  Net 

Demerara  Ry 21             £31,919  £16,062  £15,857 

Berbice  Ry 39                  9,224  13,542  —4,318 

West  Coast  Ry 15                  6,358  7,147  —789 

Total 75  £47,501         £36,751         £10,750 


79 


THE     RAILWAYS     OF     SOUTH 


PARAGUAY. 


The  only  railway  in  the  Republic  of  Paraguay  is  the  Paraguay  Central  Ry. 
(which  see).  This  line,  since  the  completion  of  the  extension  to  the  Argen- 
tinian frontier,  has  increased  greatly  in  importance.  The  road  forms  part 
of  a  through  route  from  Asuncion  to  Buenos  Ayres,  direct  passenger  train 
service  having  been  established  in  October,  1913.  To  conform  with  the 
connecting  railways  of  Argentine  Republic,  the  gauge  of  Paraguay  Central 
was  changed  to  4  ft.  8%  in.,  necessitating  the  purchase  of  entirely  new  equip- 
ment. This  company  is  building  an  extension  to  the  Brazilian  frontier,  where 
it  will  connect  with  the  Brazil  Ry.'s  system.  This  will  mean  much  to  the  In- 
land Republic  as  it  will  open  an  easy  route  for  immigration,  so  necessary  for 
the  development  of  the  vast  resources  of  the  country  which  has  an  area  of 
196,000  square  miles  (larger  than  New  England  and  the  Middle  Atlantic 
States  combined)  and  a  population  of  only  800,000.  Surveys  have  been  made 
for  the  construction  of  a  trans-continental  railway  system,  to  include  the  new 
section  of  the  Paraguay  Central  Ry.,  which  will  extend  from  the  Port  of  Sao 
Francisca,  westward  through  the  State  of  Parana,  Brazil,  to  the  Falls  of 
Iquazu  (said  to  rival  Niagara),  where  the  Republics  of  Brazil,  Argentine  and 
Paraguay  join,  thence  across  Paraguay  to  Asuncion  (via  Paraguay  Central 
lines  completed  or  building),  and  up  through  the  Chaco  Country  to  Bolivia 
where  it  either  will  connect  with  a  line  (presumably  the  Antofagasta  &  Bolivia 
Ry.)  or  else  will  be  extended  to  Chili  and  the  Pacific  Coast.  The  construction 
of  this  system,  which  will  likely  take  a  number  of  years  to  complete,  will 
open  up  vast  unexplored  territory  in  Paraguay  and  Bolivia  and  will  do  much 
to  develop  the  country  throughout  the  four  republics  traversed.  A  large 
amount  of  traffic  is  assured  as  vast  tracts  of  forest,  agricultural  and  grazing 
lands  will  be  opened  to  settlement  and  cultivation. 

The  total  foreign  commerce  of  Paraguay  for  the  year  1911  was  $11,013,412. 


80 


AND     CENTRAL     AMERICA 
Paraguay  Central  Ry. 


Avg.  Miles 
Year  Oper.  Gross  Receipts 

1907-8  155  $431,040  £86,208 

1908-9  155  387,230  77,446 

1909-10         156  485,630  97,126 


Avg.  Miles 
Year  Oper.  Gross  Receipts 

1910-11        168  $600,115        £120,023 

1911-12       232  559,918  111,984 

1912-13       232  732,557  146,511 


Stock  Outstanding  Bonds  Outstanding 

June  30,  1913  June  30,  1913 

Ordinary $2,814,650        |        Debenture  Stock  (6%) $3,000,000 

I        Notes  (6%) 2,500,000 

*Debenture  Stock  (5%) 6,500,000 

*Interest  is  contingent  on  earnings  of  the  Company,  no  interest  paid  from  earnings  of 
1912-13. 

Capitalization 

Total Per  Mile 

Stock £562,930  $2,814,650  $12,132 

Debenture  Stock,  etc 2,400,000         12,000,000  51,724 

Total 2,962,930  14,814,650  63,856 

Fixed  Charges  below  include  $51,516  (£10,303).  Interest,  discount  and  expenses  on  6% 
3-year  Notes — Proportion  chargeable  to  Revenue,  $4,504  (£901),  loss  on  exchange  and 
$7,041  (£1,408)  loss  on  sale  2%%  Guaranteed  Stock. 

Income  Account  Year  Ending  June  30,  1913 

Average  miles  operated,  232. 

Operating  Revenues 

Operating  Expenses 

Net  Operating  Revenues 

Other  Income 

Total  Net  Income 

Fixed  Charges 

Surplus 


Maintenance  of  Way 

Maintenance  of  Equipment 

Traffic  and  Transportation  Expenses. 
General  Expenses 


Operating  Expenses 


Total- 



Per  Mile 

£146,511 

$732,557 

$3,158 

80,574 

402,871 

1,737 

65,937 

329,686 

1,421 

3,955 

19,775 

85 

69,892 

349,461 

1,506 

52,442 

262,211 

1,130 

17,450 

87,250 

376 

es 

£22,986 

$114,928 

$495 

8,420 

42,101 

182 

34,709 

173,545 

748 

14,459 

72,297 

312 

Ratio  of  Operating  Expenses  to  Operating  Revenues,  55.0  per  cent. 

*This  Surplus  before  deducting  $25,000  (£5,000)  towards  reduction  of  Debit  Balance. 

Appropriation  of  Gross  Income 

1912-13 

For  Maintenance  Expenses 20.8% 

For  Traffic,  Transportation  and  General  Expenses 32.7% 

For  Fixed  Charges 34.9% 

For  Surplus 11.6% 


100.0% 


1912-13  1911-12 

Ton  miles  per  mile  of  road 59,678  36,500 

Passenger  miles  per  mile  of  road 46,172  29,159 

Miles,  yards  and  sidings 21  19 

NOTES. 

A  description  of  the  capitalization  of  this  Company  follows: 

Interest 

Capital  of  the  Company.                    Authorized.       Issued.  per 

annum. 

1.  6%  Prior  Lien  Deb.  Stock £600,000       £600,000  £36,000 

2.  6%  Notes 500,000          250,000  15,000 

3.  5%  Debenture  Stock 1,300,000       1,300,000  Nil. 

4.  Ordinary  Shares 562,930          562,930  Nil. 

81 


THE     RAILWAYS    OF    SOUTH 

1.  6%  Prior  Lien  Debenture  Stock. — This  is  a  First  Charge  on  the  under- 
taking, both  present  and  future.     Interest  is  payable  January  and  July. 

2.  6%  Notes. — These  Notes  are  payable  August,  1914.  Though  £15,000 
per  annum  is  required  for  their  service,  some  £6,000  or  £7,000  only  is  charge- 
able to  Revenue. 

3.  5%  Debenture  Stock. — Interest  is  contingent  on  the  earnings  of  the 
Company  until  the  full  amount  has  been  paid  for  three  consecutive  years,  or 
until  a  dividend  is  distributed  on  the  Ordinary  Shares.  The  Debenture  Stock 
received  4}^%  per  annum  for  the  period  from  February  25  to  June  30,  1908; 
£l  2s.  5d.%  for  1908-9  (paid  in  May,  1910),  and  nothing  since  to  November, 
1913. 

4.  Ordinary  Shares. — No  dividend  has  yet  been  paid. 

This  railway  extends  from  Asuncion,  the  capital  of  Paraguay,  via  Paraguari, 
Villa  Rica  and  Borja  to  Villa  Encarnacion  on  the  Parana  River  (232  miles) 
A  car  ferry  was  placed  in  service  in  October,  1913,  between  the  latter  point 
and  Posadas,  Argentine,  the  terminus  of  the  Argentine  North  Eastern  Ry. 
The  gauge  of  the  Paraguay  Central  Ry.  has  been  changed  to  a  gauge  similar 
to  that  of  the  Argentine  North  Eastern  Ry.  and  together  with  the  latter  and 
the  Entre  Rios  Rys.  forms  an  important  Trunk  System  instead  of  a  purely 
local  line  isolated  from  all  other  rail  connections.  Through  the  completion 
of  this  all  rail  line  the  time  consumed  in  making  the  trip  from  Asuncion  to 
Buenos  Ayres  has  been  reduced  from  5  days  to  54  hours.  Through  passenger 
service  was  established  October  12,  1913. 

A  large  mileage  of  new  extensions  is  either  projected  or  under  construction, 
including  (1)  a  line  from  Paraguari  (on  the  main  line)  to  Carapegua  (under 
construction)  and  (2)  a  line  from  Borja  easterly  to  the  falls  of  Iguazu  on  the 
Brazilian  frontier. 

New  up-to-date  equipment  has  been  acquired. 


82 


AND     CENTRAL     AMERICA 


PERU. 


Most  of  the  railway  mileage  of  Peru  is  controlled  by  the  Peruvian  Corpora- 
tion, which  was  formed  in  1890  by  the  holders  of  the  external  debt  of  this 
republic  (it  having  defaulted  in  interest  payments,  etc.)-  The  plan  was  that 
the  holders  of  the  £51,423,190  obligations  would  receive  from  the  Govern- 
ment all  the  railroads  for  a  term  of  66  years,  together  with  mining  privileges, 
land  grants,  etc.  In  return  the  bondholders  were  to  deliver  over  to  Peru  one- 
half  her  obligations  abroad,  and  look  to  Chili  for  a  settlement  of  the  other 
half.  Chili  settled  by  paying  a  large  sum  derived  from  the  sale  of  guano. 
The  bondholders  agreed  to  finish  a  number  of  railway  lines  which  were  then 
uncompleted,  and  they  were  granted  the  right  of  free  navigation  on  Lake 
Titicaca;  also  3,000,000  tons  of  guano,  and  the  sum  of  £80,000  per  annum 
for  30  years  from  October,  1893.  The  latter  annuities  are  secured  by  the 
proceeds  of  the  Custom  House  at  Callao  and  payments  are  being  made  regularly. 

The  principal  railway  taken  over  by  the  bondholders  was  the  Oroya  or 
Peruvian  Central  Ry.,  "the  highest  line  in  the  world."  This  line,  the  history 
of  which  serves  as  an  illustration  of  the  difficulties  of  railroad  building  in 
Peru  and  the  adjoining  countries,  was  begun  by  an  American,  Henry  Meiggs, 
whose  intention  it  was  to  have  the  road  cross  the  Andes  and  reach  some  port 
on  the  Amazon.  This  railway  starts  at  the  port  of  Callao,  and  in  a  distance 
of  106  miles  surmounts  an  elevation  of  15,865  feet  (Mont  Blanc  in  the  Alps 
is  15,781  feet  high).  After  leaving  Callao  the  line  passes  Lima,  follows  the 
Rincon  River  for  several  miles,  after  which  it  starts  to  climb  until  it  reaches 
Chosica,  a  famous  health  resort,  33  miles  from  the  starting  point  (height 
2,700  feet).  About  14  miles  further  on  is  San  Bartolome  (height  5,000  feet), 
near  which  place  a  "V-switch,"  the  first  of  its  kind  ever  tried,  is  in  use.  This 
is  necessary  as  the  mountain  ledge,  along  which  the  line  is  constructed,  breaks 
off  abruptly  and  another  ledge  parallel  with  the  one  used  must  be  followed  in 
order  to  reach  the  summit  above.  Meiggs,  after  deciding  on  the  "V-switch," 
levelled  off  a  stretch  of  embankment  on  the  left  hand  side  of  the  track  and 
erected  a  turntable,  the  plan  being  to  run  the  train  past  the  turntable,  un- 
couple the  engine,  turn  it  around  and  hitch  it  to  the  rear  of  the  train.  In 
order  to  do  this  in  the  limited  space  available,  the  locomotive  is  run  down 
one  arm  of  the  "V-switch"  onto  the  turntable,  which  is  swung  around  until 
the  engine  faces  the  other  arm  of  the  "V"  which  is  followed  to  the  rear  of  the 
train  which  now  runs  in  practically  the  direction  from  which  it  came,  only 
using  another  course.  There  are  about  21  additional  "V-switches"  in  use 
along  the  route. 

After  the  railway  leaves  San  Bartolome  there  is  in  the  next  five  miles  a  climb 
of  about  1,000  feet  to  reach  the  Cuesta  Blanca  or  White  Hill  Tunnel.  On  a 
portion  of  this  stretch  of  road  the  Verrugas  Bridge  or  Viaduct  is  crossed.  The 
construction  of  this  bridge,  which  is  set  at  an  altitude  of  5,840  feet,  was  one 
of  the  great  difficulties  of  the  undertaking.  It  is  a  cantilever  bridge  575  feet 
in  length  and  had  to  be  placed  nearly  300  feet  above  the  bottom  of  the  ravine, 
through  which  at  certain  seasons  there  rushes  a  raging  torrent.  The  spanning 
of  this  gorge  cost  hundreds  of  lives,  mostly  through  the  out-break  of  a  disease 
known  as  the  "Verrugas  fever."     Beyond  the  Cuesta  Blanca  Tunnel  the  line 

83 


THE     RAILWAYS     OF     SOUTH 

zigzags  its  way  until  Chicla,  87  miles  from  Callao,  is  reached,  at  an  altitude 
of  12,215  feet.  In  the  34  miles  from  the  tunnel  to  the  town,  there  is  one 
stretch  a  mile  in  length  in  which  a  rise  of  700  feet  must  be  accomplished,  followed 
by  another  stretch  of  five  miles  in  which  an  ascent  of  another  2,000  feet  is 
necessary.  After  this  comes  another  portion  of  the  line  whereon  Meiggs 
performed  another  wonderful  engineering  feat.  The  railway  at  this  point 
tunnels  a  high  mountain  crag  to  emerge  at  the  brink  of  a  ravine,  at  the  bot- 
tom of  which  a  stream  rushes.  On  the  other  side  of  the  ravine  another  mount- 
ain peak  had  also  to  be  tunneled.  Across  the  chasm  there  was  built  out 
from  the  two  tunnels  a  bridge,  known  as  the  Infiernello  (Hell)  Bridge.  The 
sharp  cliffs  forming  the  sides  of  the  chasm  extend  so  high  above  the  railway 
that  they  almost  exclude  the  light  of  day.  The  line  then  proceeds  through 
scenes  of  wild  grandeur  until  Chicla  is  reached.  The  amount  of  blasting 
required-  in  laying  out  the  right  of  way  necessitated  the  use  of  over  500,000 
pounds  of  explosives  per  month,  and  over  8,000  men  were  at  times  employed 
in  the  building  of  the  road.  When  Chicla  was  reached  in  1877  Meiggs  died,'his 
death  being  due  to  overwork  and  the  great  strain  connected  with  planning 
the  enterprise.  The  Government's  treasury  was  then  running  low  and 
work  ceased,  not  to  be  resumed  until  1891,  when  the  Peruvian  Corporation 
took  over  the  railway.  This  corporation  let  a  contract  to  complete  the  line 
to  William  Thorndike  (like  Meiggs  an  American),  who  continued  along  the 
surveys  marked  out  by  his  predecessor,  until  the  maximum  point  of  the  main 
line,  at  the  great  height  of  15,665  feet,  is  reached.  A  branch  was  also  con- 
structed to  Mirochoca,  which  reaches  the  height  of  15,865  feet.  At  a  point 
106  miles  from  Callao,  and  at  an  altitude  of  15,665  feet  above  the  Pacific 
Ocean,  a  tunnel  (the  highest  in  the  world)  3,855  feet  in  length  had  to  be  cut 
through  a  mountain  peak  forming  a  part  of  the  continental  divide.  This  is 
located  in  the  regions  of  almost  perpetual  snow.  From  the  eastern  portal 
of  this — the  Galera  tunnel — the  railway  begins  its  descent  to  the  terimnal  at 
Oroya,  about  31  miles  beyond.  This  town,  a  place  of  some  importance,  is 
about  12,178  feet  above  the  level  of  the  sea,  is  the  junction  of  the  extension  to 
Huancayo  and  is  also  the  starting  point  of  the  Cerro  de  Pasco  Ry. 

The  building  of  this  railway  cost,  it  is  estimated,  fully  $200,000  per  mile 
and  not  less  than  7,500  lives.  The  undertaking  was  one  of  the  greatest  engi- 
neering feats  of  modern  time. 

Peru  is  not  well  furnished  with  railway  facilities,  but  the  comparatively 
small  mileage  in  operation — 1,841  miles  in  a  State  which  has  an  area  of  650,000 
square  miles  and  a  population  of  4,700,000 — is  accounted  for  by  the  difficult 
configuration  of  the  country  for  the  construction  work.  In  comparison  with 
the  cost  in  other  South  American  countries,  Peru  has  had  to  pay  dearly  for 
her  railways,  and  the  figure  of  $100,000  per  mile,  which  it  is  stated  much 
of  the  early  railway  work  cost,  is  certainly  not  an  exaggerated  estimate. 

Under  the  arrangement  which  is  now  a  familiar  story  the  Peruvian  Cor- 
poration (which  see)  operates  the  railway  system.  The  Central  of  Peru  Ry. 
is  in  many  respects  one  of  the  most  remarkable  railways  in  the  world.  It 
has  a  length  of  249  miles,  and  the  track,  which  is  of  standard  gauge,  is  carried 
to  an  altitude  of  15,665  ft.  A  branch  now  under  construction  will  extend 
the  Oroya-Huancayo  section  to  Ayacucho.  Another  important  railway,  in 
addition  to  the  "Central"  described  above  and  elsewhere,  is  the  Southern 
Ry.  of  Peru  (see  that  company),  which  connects  Mollendo,  the  second  port 
of  Peru,  with  Cuzco,  and  through  Puna  with  Lake  Titicaca,  and  Guaqui, 
the  starting  point  of  the  railway,  to  La  Paz.  It  is  hoped  to  provide  a  rail 
route  between  Puno  and  Guaqui,  at  a' cost  of  about  $2,500,000.     This  will 

84 


AND     CENTRAL     AMERICA 

give  a  direct  rail  route  from  Buenos  Aires  to  Mollendo.  The  Pacasmayo 
and  Guadalupe  Ry.  is  to  be  extended  to  Magdalena,  and  eventually  to 
Cajamarca.  Ilo,  the  port  which  is  said  to  be  coveted  by  Bolivia,  is  served 
by  a  narrow-gauge  line  62  miles  in  length  from  Moquegua,  the  centre  of  a 
fertile  wine  and  olive  district. 


Peruvian  Corporation. 

The  reasons  for  the  formation  of  the  Peruvian  Corporation  (incorporated 
in  1890)  are  given  in  the  several  pages  just  preceding.  As  stated  the  holders 
of  the  Republic's  bonds  which  defaulted  payment  exchanged  each  £100  of 
their  bonds  for  either  £24  preference  stock,  entitled  to  cumulative  dividends 
at  the  rate  of  4%  per  annum  or  for  £30  ordinary  stock.  The  Corporation 
was  empowered  to  issue  bonds  or  debentures  up  to  £6,000,000.  The  railway 
concessions  are  for  66  years;  the  operations  of  these  railways  are  described 
later. 

The  Income  Accounts  of  the  Peruvian  Corporation,  covering  a  period  of 
five  years,  is  given  as  follows: 

Year  ending  June  30 .-..1908-9     1909-10     1910-11     1911-12     1912-13 

£  £  £  £  £ 
Net     revenue,     Railways     and 

Steamers 228,247  321,267  452,365  418,910  415,314 

Government  annuity 80,000  80,000  80,000  80,000  80,000 

Guano  account 140,854  103,016  114,008  141,143  113,471 

Interest,  exchange,  etc 20,526  18,137  5,357  6,935  9,242 


Total  income 469,627     522,420     651,730     646,988     618,567 

Administration 19,281        21,243        17,890       23,683        23,166 


Balance  of  revenue 450,346  501,177     633,840     623,305     595,401 

Debenture  interest  (4%) 216,000  216,000     216,000     216,000     216,000 

Interest  on  Loans 3,406       

Sums  written  off 22,179  20,543        72,870       26,824       22,517 

Debenture  amortization.. 27,000  53,181        54,000       54,000       54,000 


Available  balance 181,761      211,453     290,970  326,481  302,884 

To  reserve 50,000  25,000 

Additional    debenture    interest 

(2%) 108,000     108,000     108,000  108,000  108,000 


Available  for  preference 73,761      103,453  182,970  168,481  169,884 

Preference  dividend 74,492       93.120  149,033  167,691  167,704 

(1%)        (1M%)  (2%)  (2M%)  (2H%) 

Year's  balance Dr.  731        10,333  33,927  790  2,180 

Carried  forward 13,144       23,477  57,413  58,203  60,382 

The  portion  of  the  Net  Revenue  for  1912-13,  derived  from  the  operation  of 
the  railways  and  steamer  lines  were: 

85 


THE     RAILWAYS     OF     SOUTH 

£  $ 

The  Peruvian  Central  Ry 183,975  919,875 

The  Peruvian  Southern  Rv 128,003  640,015 

The  Guaqui-La  Paz  Rv 38,351  191,755 

The  Truiillo  Rv 18,89 1  94,455 

The  Pavta  Rv.' 9,088  45,440 

The  Pacasmavo  Rv 4,327  2 1 ,635 

The  Pisco  to  Yea  Ry 6,07 1  30,355 

The  Chimbote  Rv -3,390  -16,950 

Lake  Titicaca  Steamers 30,296  151,480 

River  Desaguadero   Navigation -298  -1,490 

£415,314       $2,076,570 

Note:  The  total  Gross  Receipts  from  the  Railwavs  and  Navigation  were 
£1,146,300  ($5,731,500)  as  against  £1,080,290  ($5,401,450)  in  1911-12.  The 
total  Net  Receipts  for  1912-13  were  £438,501  ($2,192,505). 

The  Capital  Outstanding  at  June  30,  1913,  was  as  follows: 

Total 

4%    Cumulative    Preference    Shares 

(par  £l) £7,500,000         $37,500,000 

Ordinary  Shares  (par  £1) 9,000,000  45,000,000 

Debentures  6% 5,176,000  25,880,000 


• 


Total  Capital  Outstanding £21,676,000     $108,380,000 

*4%  OI  which  is  fixed  interest.  The  original  amount  of  these  Debentures 
was  £5,400,000  ($27,000,000),  the  balance  having  been  redeemed  through 
the  operation  of  a  sinking  fund,  including  £60,750  ($303,750)  redeemed 
(at  105%)  in  1912-13.  The  outstanding  amount  of  debentures  was  reduced 
February  1,  1914,  to  £5,111,800  through  the  operation  of  the  Sinking  Fund. 

The  arrears  of  dividend  accrued  on  the  Preference  Stock  amount  at  June 
30,   1913,  to  73%%. 

Among  the  Assets  and  Liabilities  as  shown  in  the  balance  sheet  as  of  June 
30,  1913,  were  the  following  items: 

Assets: 

Cost  to  June  30,  1912,  of  the  vari- 
ous Properties  and  Concessions 
acquired  under  or  in  connection 
with  the  contract  for  Conversion 
of  the  Peruvian  External  Debt, 
the  expenditure  to  date  in  de- 
veloping the  undertakings  (in- 
cluding £892,840  discount  on 
Capital,  cost  of  issuing  Deben- 
tures, etc.)  after  deducting  the 
value  of  railroad  stocks £12,772,305  $63,861,525 

Stocks  of  Companies  (including 
£2,224,800  Southern  Ry.  of 
Peru  stock,  £1,333,327  Central 
Rv.    of    Peru     stock,     £439,993 

TrujilloRv.  stock,  etc.) 4,252,223  21,261,115 

86 


AND     CENTRAL     AMERICA 

^  Carried  over £17,024,528  $85,122,640 

Expenditures  in  Reconstructing 
and  Extending  the  above  Rail- 
ways  . 4,859,692  24,298,460 

Purchase  of,  and   Expenditure  on, 

Guaqui-La  Paz  Ry 371,938  1,859,690 

Cost  of  Mallendo  Port  Improve- 
ment   119,607  598,035 

Investments  at  Market  Value 138,650  693,250 

Cash,  Bills  Receivable,  etc 120,091  600,455 

Other  Assets 452,109  2,260,545 

Total  Assets £23,086,615  $115,433,075 

Liabilities: 
Stocks  and  Debentures  outstanding 

June  30,  1913 £21,676,000         $108,380,000 

Reserve    Account    (£625,000)    also 

Lake  Steamers  and  Fire      Insur- 

^   ance  Account  (£40,938) 665,938  3,329,690 

Sinking     Fund,     Credit     Balances, 

Accrued  Interest,  etc 383,591  1,917,955 

Balance  to  Net  Revenue  Account.  .  361,086  1,805,430 

£23,086,615         $115,433,075 

The  Peruvian  Corporation  has  surveyed  a  route  to  head  of  navigation  of 
the  Madre  de  Dios  River,  which  flows  easterly  passing  through  Eastern  Peru 
and  Northern  Bolivia  until,  joining  the  Beni  River,  it  becomes  an  important 
tributary  of  the  Amazon.  At  Riberalta  (Bolivia)  the  traffic  of  the  railway 
and  the  river  will  be  transferred  to  the  Madeira-Mamore  Ry.  around  the 
series  of  cataracts  which  make  navigation  impossible,  and  then  re-shipped 
down  the  Madeira  and  the  Amazon  River  to  the  sea. 

There  follows  under  separate  heads  a  brief  description  of  several  of  the 
important  railway  lines  operated  by  the  Corporation.  It  is  not  deemed 
necessary  to  review  the  operations  of  the  Steamer  Lines,  etc.,  on  Lake  Titicaca 
(the  highest  lake  in  the  world)  and  the  River  Desaguadero  other  than  to 
state  that  the  Gross  Receipts  for  1912-13  were  £63,967  ($319,835)  a  loss  of 
£414  as  compared  with  1911-12,  and  the  Net  Receipts  were  £29,998  ($149,990) 
a  gain  on  1911-12  of  £2,498. 


Central  of  Peru  Ry. 

This  railway  which  bears  the  distinction  of  being  "the  highest  line  in  the 
world"  was  started  in  the  sixties  by  Henry  Meiggs,  an  American,  and  finally 
completed  to  Oroya  (138  miles)  in  the  nineties  by  William  Thorndike  (also 
an  American).  A  description  of  the  building  of  this  line,  which  cost,  it  is  stated, 
about  $42,500,000,  is  given  under  the  general  head  of  "Peru."  In  addition  to 
the  Callao-Lima-Oroya  Line  the  Central  also  operates  a  railway  from  Lima  to 
the  port  and  seaside  resort  of  Ancon,  where  connection  is  afforded  with  the 

87 


THE     RAILWAYS     OF     SOUTH 

North  Western  of  Peru  Ry.  (since  June  30,  1913,  worked  by  the  "Central") 
to  Huacho,  Sayan,  etc.  There  are  also  in  operation  an  extension  from 
Croya  to  Huancayo,  from  which  latter  point  a  line  is  being  built  to  Ayacucho, 
capital  of  the  state  bearing  that  name.  There  is  also  a.  branch  from  near 
the  Galera  tunnel  (the  highest  tunnel  in  the  world — length  380  feet),  to  the 
mines  at  Morococha.     This  branch  reaches  the  great  altitude  of  15,865  feet. 

The  earnings  of  this  company  (including  the  Morococha  Branch  and  the 
Oroya-Huancayo  Extension)  for  1912-13  and  1911-12  were  as  follows: 

1912-13 1911-12 

Gross  Receipts..     £507,809     $2,539,045  £455,128     $2,275,640 

Working  Expenses    320,031        1,600,155  254,806       1,274,030 

Net  Receipts       £187,778        $938,890  £200,322     $1,001,610 

£183,975  ($919,S75)  of  the  Net  Receipts  for  1912-13  were  paid  to  the 
Peruvian  Corporation.  The  latter  owns  £1,333,327  ($6,666,635)  stock  of 
the  Railway. 

This  railway  carried  2,407,867  passengers  and  408,556  tons  of  freight  in 
1912-13  as  against  1,807,060  passengers  and  340,720  tons  of  freight  in  1911-12. 
About  $125,000  (£25,000)  was  expended  during  the  year  for  permanent  addi- 
tions and  improvements,  etc. 

The  gross  receipts  in  1892-3  were  in  round  figures £91.000 

In  1902-13  they  were 234,000 

In  1912-13  the  gross  receipts  were 507,000 

The  net  receipts  in  1892—3  were 3,616 

In  1902-3  they  were 88,671 

In  1912-13  they  were 187,778 

See  North-Western  Ry.  of  Peru,  regarding  the  provisional  working  of  that 
line  by  the  Central  of  Peru  Ry. 

The  total  length  of  this  railway  was,  at  the  close  of  1913,  249  miles. 

Important  coal  fields  have  been  found  along  the  Huancayo  Extension  and 
are  to  be  likely  developed  by  the  Peruvian  Corporation. 


Cerro  de  Pasco  Ry. 

The  Cerro  de  Pasco  Ry.  is  owned  by  the  Cerro  de  Pasco  Mining  Co.  and 
operates  a  line  of  railway  from  Oroya,  Peru  (on  the  Central  of  Peru  Ry.)  to 
Cerro  de  Pasco,  with  a  branch  to  the  company's  coal  fields  (104  miles  operated 
— total  track  including  sidings,  etc.,  125.  The  main  line  has  an  average  grade 
of  1.5%  with  a  maximum  grade  of  3.7%,  is  of  4  ft.  8%  in. gauge,  and  cost  upward 
of  $2,000,000.  Equipment  consisted  at  last  accounts  of  19  locomotives  and 
306  cars.    The  railway  is  said  to  be  on  a  paying  basis. 

Cerro  de  Pasco  is  14,300  feet  above  the  sea  level  and  the  mines  there  (dis- 
covered 1630)  had  produced  to  the  close  of  the  Nineteenth  Century  40,000,000 
tons  of  silver  and  copper  ore. 

This  property  is  owned  and  operated  by  an  American  company  (a  close 
corporation). 

88 


AND     CENTRAL     AMERICA 
Chimbote  Ry. 

This  railway  runs  from  the  port  of  Chimbote,  located  in  the  State  of  Ancacho, 
about  218  miles  north  of  Callao,  inland  for  about  35  miles  via  Sucheman 
(its  former  terminal)  to  Canon  Del  Pato.  Extensions  are  planned  which  will 
carry  the  railroad  inland  for  about  120  miles  to  Huaras  and  Recuay,  and  which 
will  make  it  a  line  of  far  greater  importance  than  at  present,  as  it  will  run 
through  a  rich  mining  country,  capable  of  considerable  development.  At 
present  a  small  traffic  consisting  of  sugar,  cotton,  rice  and  mineral  products,  is 
handled,  unprofitablv,  as  the  following  table  of  earnings  for  1912-13  and 
1911-12  will  show: 

1912-13 1911-12 

Gross  Receipts £4,380  $21,900  £4,445  $22,225 

Working  Expenses 7,772  38,860  5,718  28,590 


Net  Loss £3,392  $16,960  £1,273  $6,365 

The  Income  Account  of  the  Peruvian  Corporation  was  debited  in  1912-13, 
£3,390  ($16,950)  advances  to  make  up  the  Railway's  operating  deficit. 

The  heavy  increase  in  Working  Expenses  was  due  to  increased  Maintenance 
Expenses,  caused  by  floods  from  the  River  Santa. 

It  is  stated  that  Chimbote  is  one  of  the  best  ports  in  Peru,  being  situated  in 
the  Bay  of  Ferrol,  which  is  8  miles  by  4^  miles  in  size  and  protected  by  a 
long  isthmus  and  several  islands.  A  large  coal  area  has  been  discovered 
upwards  of  50  miles  inland. 


Ilo-Moquequa  Ry. 

The  Peruvian  Corporation  operates  this  line  under  arrangement  with  the 
Peruvian  Government,  but  the  conditions  of  the  lease  have  not  yet  received 
the  sanction  of  the  Congress  of  the  Republic.  Pending  the  conclusion  of  a 
definite  arrangement  between  the  Corporation  and  Peru,  no  separate  state- 
ment of  income  has  been  shown  in  the  annual  report  of  the  former.  The  rail- 
way is  about  62  miles  in  length,  linking  up  the  port  of  Ilo  with  Moquegua, 
the  capital  of  the  province  of  that  name.  The  district  traversed  is  an  agri- 
cultural one  of  great  productiveness,  its  principal  exports  being  wine,  olives 
and  olive  oil. 

Ilo  possesses  a  most  excellent  harbor  and  is  located  in  the  far  southerly 
part  of  the  Republic  not  far  from  the  Chilian  frontier. 


89 


THE     RAILWAYS     OF     SOUTH 
North  Western  Ry.  of  Peru. 

Avg.    Miles 
Year  Oper.  Gross  Receipts 

♦1912-13  tl30  J$146,535  £29,307 

*July  8,  1912  to  June  30,  1913.     tApproximate.      JGross  Income  $458,040.     (£91,608) 

♦Stock  Outstanding  *Debentures  Outstanding 

June  30,  1913  June  30,  1913 

Common $1,094,335  First  Mtge  Debs.  (5%) $4,983,000 

j  Second  Mtge  Debs.  (5%) .  .  89,000 

*(£218,867).  Additional  stock  to  the  amount  of  $1,876,975  (£375,395)  also  $5,580 
(£1,116)  Second  Mortgage  Debentures  are  to  be  issued  to  the  Peruvian  Railway  Con- 
struction Co. 

Capitalization 

Total Per  Mile 

Stock £218,867  $1,094,335  $8,418 

Bonds 1,014,400  5,072,000  39,015 

Total 1,233,267  6,166,335  47,433 

Fixed  Charges  below  include  $44,955  (£8,991)  Expenses  and  Discount  re  Debenture 
Issues. 

Income  Account  Year  Ending  June  30,  1913 

Average  miles  operated  130. 

Total Per  Mile 

Gross  Receipts £29,307  $146,535  $1,127 

Operating  Expenses 25,779  128,895  991 

Net  Receipts 3,528  17,640  136 

Other  Income 62,301  311,505  2,396 

Total  Net  Income 65,829  329,145  2,532 

Fixed  Charges 83,907  419,535  3,227 

Deficit 18,078  90,390  695 

Operating  Expenses 

Maintenance  of  Way £6,320  $31,600  $243 

Maintenance  of  Equipment  and  Locomotive  Power  11,712  58,560  450 

Traffic  and  Telegraph  Expenses 5,138  25,690  198 

General  Expenses 2,609  13,045  100 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  87.9  per  cent. 

Other  Income  above  includes  $311,440  (£62,288)  Interest  Guaranteed  by  the  Govern- 
ment of  Peru  under  the  terms  of  the  Concession. 

Appropriation  of  Gross  Income 

1912-13 

For  Maintenance  and  Locomotive  Expenses 19.7% 

For  Traffic,  Transportation  and  General  Expenses 8.4% 

For  Fixed  Charges 91.6% 

For  Surplus Deficit 

NOTES 

The  North  Western  Ry.  Co.  of  Peru  was  formed  to  construct  a  line  of  rail- 
way located  wholly  within  the  Republic  of  Peru,  from  Lima,  the  capital,  via 
Ancon  and  Huacho  to  Sayan.  During  1912—13  the  line  was  in  operation  from 
Ancon  to  Huacho  and  Sayan,  a  distance  of  about  130  miles. 

The  important  section  of  the  line  between  Lima  and  Ancon  has  not  yet  been 
completed  owing  to  opposition  on  the  part  of  the  Government. 

The  company  has  agreed  to  an  arrangement  with  the  Central  Ry.  of  Peru 
for  a  third  rail  to  be  laid  on  that  Company's  line  between  Lima  and  Ancon  to 
meet  the  difference  in  the  gauges  of  the  two  lines.  To  January,  1914,  the 
Government  had  withheld  its  sanction  to  the  arrangement,  necessitating  the 
trans-shipment  of  all  freight  and  passengers. 

90 


AND     CENTRAL     AMERICA 

Pending  a  settlement  with  the  Government  the  North  Western  Ry.  of  Peru 
has  entered  into  a  temporary  arrangement  with  the  Central  Ry.  of  Peru, 
whereby  the  latter  will  work  the  former's  line  on  a  cost  and  percentage  basis. 

No  dividends  are  being  paid  on  the  shares  of  the  North  Western  Ry.  of  Peru. 
A  total  of  218,867  shares  of  £l  each  had  been  issued  to  June  30,  1913,  while 
375,395  further  shares  are  to  be  issued  to  the  Peruvian  Ry.  Construction  Co. 

In  accordance  with  the  terms  of  the  concession  the  deficit  for  1912-13, 
$90,390  (£18,078),  as  shown  on  the  table  page  in  this  book,  is  repayable  by  the 
Government,  the  company  being  indemnified  against  loss  on  working  the  rail- 
way. 


Pacasmayo  &  Guadalupe  Ry. 

This  railway  extends  from  the  port  of  Pacasmayo,  in  the  State  of  that  name, 
with  Guadalupe,  26  miles  inland  (population  4,000),  Yonan,  Chilate,  etc.,  the 
total  length  being  about  84  miles.  Plans  have  been  promulgated  whereby  a 
further  extension  will  be  built  to  Magdalena  and  later  to  Cajamarca,  about 
25  miles  beyond  Chilate.  Cotton,  rice  and  sugar  are  the  principal  commodities 
handled. 

The  earnings  of  this  railway  for  1912-13  and  for  1911-12  were  as  follows: 

1912-13 1911-12 

Gross  Receipts £20,898  $104,490  £19,143  $95,715 

Working  Expenses 15,446  77,230  14,539  72,695 


Net  Receipts £5,452  $27,260  £4,604  $23,020 

Of  the  Net  Receipts  for  1912-13,  £4,327  ($21,635)  were  paid  to  the  Peruvian 
Corporation,  the  latter  owning  £199,693  ($998,465)  of  the  stock. 

The  Chilate  extension  represents  a  cost  of  £235,000;    to  date  ot  has  shown 
but  little  return  on  the  investment. 


Payta  to  Piura  Ry. 

This  railway,  like  most  other  railways  in  Peru,  is  controlled  by  the  Peruvian 
Corporation,  the  latter  holding  53%  or  £53,000  of  its  £100,000  stock,  including 
£8,000  stock  purchased  during  1912-13.  A  dividend  of  7%  was  paid  on  this 
£100,000  stock  in  1912-13. 

This  railway  is  about  62  miles  in  length  and  extends  from  the  port  of  Payta 
(about  500  miles  north  of  Callao)  to  Piura.  Payta  (population  2,000)  is  said 
to  be  the  driest  town  in  the  world,  fifteen  years  having  been  known  to  pass 
without  any  rainfall.  It  is,  however,  a  stopping  place  for  the  steamers  of  the 
Pacific  Steam  Navigation  Company  and  serves  as  an  outlet  for  the  products 
of  the  Piura  Valley  some  miles  inland.  This  section,  which  owes  its  fertility 
largely  to  the  Piura  River,  rising  high  in  the  Andes,  is  a  large  producer  of 
cotton,  which  forms  the  principal  source  of  traffic  for  the  railway. 

91 


THE     RAILWAYS     OF     SOUTH 

The  earnings  of  this  railway  for  the  years  1912-13  and  1911-12  were  as 
follows: 

1912-13 1911-12 

Gross  Receipts £36,503  $182,515  £33,033  $165,165 

Working  Expenses....  21,475  107,375  17,396  86,980 

Net  Receipts £15,028  $75,140  £15,637  $78,185 

£9,088  ($45,440)  of  the  Net  Receipts  for  1912-13,  were  paid  to  the  Peruvian 
Corporation  representing  interest  on,  and  amortization  of,  the  Corporation 
Debentures  served  by  the  Company  and  a  dividend  of  7%  on  the  Ordinary 
Stock  of  the  Company  owned  by  the  Corporation. 


Pisco  to  lea  Ry. 

This  railway  is  controlled  by  the  Peruvian  Corporation,  but  is  worked 
bv  Lessees  for  a  consideration  of  30%  of  the  Gross  Receipts.  The  line  ex- 
tends from  the  Port  of  Pisco,  located  some  distance  to  the  south  of  Callao, 
to  lea  (or  Yea),  46  miles  inland.  It  is  the  highway  by  means  of  which  the 
products  of  the  departments  of  lea,  Ayacucho  and  Huancavelica  obtain  their 
tidewater  outlet.  The  principal  commodities  handled  are  grapes  and  their 
products.      Ica,  its  inland  terminal,  has  a  population  of  about  10,000. 

The  earnings  for  1912-13  and  1911-12  were  approximately  as  follows: 

1912-13 1911-12 


Gross  Receipts £20,240  $101,200  £20,679  $103,395 

Amount  paid  Peru- 
vian Corporation        6,071  30,355  6,204  31,020 

The   Gross    Receipts    per    mile   for    1912-13    were   $2,067.     The    Peruvian 
Corporation  contemplates  the  building  of  a  line  from  Lima  via  Chinca  to  Pisco. 


Southern  Ry.  of  Peru. 

This  railway,  which  is  controlled  and  operated  by  the  Peruvian  Corporation, 
has  its  tidewater  terminal  at  Mollendo,  which  ranks  second  only  to  Callao 
in  its  importance  as  a  Peruvian  Port.  Mollendo  is  located  near  the  southerly 
end  of  the  Republic,  and  though  its  harbor  is  a  poor  one,  and  its  population 
not  large  (less  than  5,000),  it  is  the  great  shipping  place  for  the  tablelands  of 
Southern  Peru  and  the  regions  about  Lake  Titicaca.  The  railway  runs 
south  for  some  miles  along  the  beach  to  Mejia  and  then  zigzags  its  way  east- 
ward and  northeastward,  through  a  thinly  settled  arid  country,  until  at  a 
height  of  about  7,500  feet  above  the  ocean,  Arequipa,  the  second  largest  city 
of  Peru  (population  about  40,000),  is  reached  (107  miles  from  Mollendo). 
Beyond  this  point  the  traffic  becomes  lighter,  but  it  is  still  sufficient  to  pay  and 
a  semi-weekly  passenger  train  service  is  maintained  to  connect  the  Pacific 
Steam  Navigation  Company's  steamers  from  Callao  and  other  points  with 
the   interior.     The   line    after  leaving  Arequipa    resumes   its    upward   climb, 

92 


AND     CENTRAL    AMERICA 

following  the  trails  of  the  Incas  marked  out  previous  to  the  Spanish  Conquest, 
until  Juliaca,  the  junction  of  the  branch  to  Lake  Titicaca  is  reached.  From 
this  point  (about  307  miles  from  Mollendo)  the  railway  follows  the  table- 
land northward,  passing  among  other  places  the  towns  of  Tirpata,  Santa  Rosa 
and  Sicuani,  and  climbing  through  the  passes  of  La  Roya  (altitude  14,518 
feet)  and  Crucero  (altitude  14,666  feet)  to  Cuzco  (206  miles  from  Juliaca). 
The  country  about  the  latter  city  is,  owing  to  irrigation,  highly  productive 
and  the  railway  which  has  but  recently  been  completed  to  this  section  should 
greatly  assist  in  its  wider  development.  Cuzeo  itself  has  a  population  of 
about  25,000  and  is  probably  the  oldest  city  of  South  America,  having  been  the 
capital  of  the  ancient  Peruvian  Empire.  This  new  extension  earned  about 
.08%  on  the  cost  of  construction  during  1912-13. 

The  Lake  Titicaca  branch  extends  to  Puno  at  the  northern  end  of  the  lake, 
(29  miles  from  Juliaca),  from  which  place  a  line  of  steamers,  operated  by  the 
Peruvian  Corporation,  runs  across  to  Guaqui  on  the  Bolivian  shore.  Lake 
Titicaca,  the  highest  large  body  of  water  in  the  world,  is  12,900  feet  above  the 
sea  level,  is  165  miles  in  length  and  has  a  maximum  width  of  60  miles. 

The  earnings  of  the  Southern  Ry.  of  Peru  for  1912-13  and  1911-12  were 
as  follows: 

1912-13 1911-12 

Gross  Receipts £356,674         $1,783,370  £354,190         $1,770,950 

Working  Expenses 223,707            1,118,535  226,676            1,133,380 


Net  Receipts £132,967  $664,835         £127,514  $637,570 

£128,003  ($640,015)  of  this  Company's  earnings  for  1912-13  were  paid  to 
the  Peruvian  Corporation,  which  owns  £2,224,800  ($11,114,000)  of  its  stock. 

This  railway  carried  in  1912-13,  587,818  passengers  and  140,351  tons  of 
freight,  as  against  in  1911-12,  622,617  passengers  and  136,734  tons  of  freight. 
The  decrease  in  the  receipts  from  passenger  traffic  was  only  £390  ($1,950) 
the  falling  off  being  in  local  traffic  due  to  the  electrification  of  a  tramway 
between  Arequipa  and  Tringo. 

The  sum  of  £17,206  ($86,030)  was  charged  against  the  Revenue  for  1912- 
13,  in  connection  with  the  work  of  relaying  the  line  between  Arequipa  and  Puno- 

The  total  mileage  in  operation  during  1913  totalled  535  miles,  this  being 
the  longest  railway  line  in  Peru.  The  gauge  is  4  ft.  8J/2  in.  An  extension 
is  proposed  to  the  Madre  de  Dios  River. 


Trujillo  Ry. 

The  Trujillo  (or  Truxillo)  Ry.  connects  the  town  of  that  name  (population 
about  12,000)  and  the  country  to  the  north  of  it,  with  Salaverry,  the  port  of 
entry  for  the  state  of  Liberta,  quite  an  important  port,  although  its  harbor 
is  but  a  rough  open  roadstead,  protected  by  jetties,  and  is  located  about  250 
miles  north  of  Callao.  The  railway  runs  through  Trujillo  to  Huanchaco, 
Chocope,  Chicama,  Ascope,  etc.,  upwards  of  53  miles.  Sugar  and  rice  form 
the  principal  commodities  handled. 

93 


THE     RAILWAYS    OF     SOUTH 

The  earnings  of  this  railway  for  the  years   1912-13  and   1911-12  were  as 
follows: 

1912-13 1911-12 

Gross  Receipts £62,078  $310,390  £57,636  $288,180 

Working  Expenses 35,830  179,150  32,719  163,595 


Net  Receipts £26,248  $131,240  £24,917  $124,585 

Of  the  Net  Receipts  for  1912-13,  £18,891  ($94,455)  were  paid  to  the  Peruvian 
Corporation,  owners  of  £439,993   ($2,199,965)  Trujillo  Ry.  Ordinary  Stock. 


94 


AND     CENTRAL     AMERICA 


URUGUAY. 


On  the  pages  following  is  to  be  found  descriptive  matter  relating  to  several 
of  the  principal  railways  now  in  operation  or  under  construction  in  the  Republic 
of  Uruguay.  The  principal  existing  system  is  the  Central  Uruguay,  which, 
with  its  main  line  and  various  extensions,  operated  on  June  30,  1913,  a  total 
of  975  miles,  and  through  its  northern  extension  has  recently  opened  a  con- 
necting line  with  the  Brazil  Ry.  system.  This  new  international  route  (opened 
September,  1913)  will  serve  to  establish  closer  relations  between  Brazil  and 
Uruguay  and  will  make  possible  rail  communication  (except  for  a  change 
necessary  owing  to  a  break  in  the  gauge)  between  Rio  Janeiro,  Sao  Paulo  and 
Montevideo — another  link  in  the  chain  of  railways  between  the  various 
republics.  There  are  also  two  other  lines  in  Uruguay  reaching  the  Brazilian 
frontier. 

The  Republic  of  Uruguay,  except  for  a  possible  occasional  setback,  is  making 
good  progress  and  is  said  to  be  the  richest  nation  per  capita  (Argentine  only 
excepted)  in  the  world.  The  population,  December  31,  1912,  reached  a  total 
of  1,225,914  (area,  72,210  square  miles — equal  to  New  England,  New  Jersey 
and  Delaware  combined).  The  total  exports  for  the  vear  1912  reached  a 
market  value  of  about  £11,285,500  ($55,000,000).  Wooi  shipments  alone  for 
1912  (80,940,342  kilos)  were  valued  at  £5,510,831,  as  compared  with  £2,210  848 
in  1902  (43,380,447  kilos.)  and  £1,124,502  (21,235,776  kilos.)  in  1882.  During 
the  first  six  months  of  1913,  3,240  vessels,  representing  a  total  tonnage  of 
6,387,343,  made  use  of  the  port  of  Montevideo,  which  number  will  likely  be 
greatly  increased  in  the  near  future  owing  to  the  large  quantity  of  Uruguayan 
beef  to  be  shipped  to  the  American  markets. 

At  the  close  of  1911  there  were  about  1540  miles  of  railway  in  operation  in 
Uruguay  (total  since  somewhat  increased). 

An  important  new  railway  system  has  recently  been  incorporated  under 
the  name  of  the  Uruguay  Ry.  Co.  (see  Brazil  Ry.),  which  is  to  build  a  line 
from  San  Luis  on  the  Brazilian  border  to  Colonia,  situated  only  26  miles 
from  Buenos  Ayres.  At  Colonia,  if  plans  materialize,  docks,  etc.,  will  be 
constructed  and  arrangements  will  be  made  so  that  large  ocean  steamers 
will  be  able  to  load  and  unload.  This  port  was  to  have  been  the  southern 
terminus  of  the  proposed  "Pan-American  Trans-Continental  Ry.  The  plan 
to  build  this  railway  seems  to  have  fallen  through  and  the  Government  has 
taken  up  the  enterprise.  A  reference  to  this  railway  contained  in  the  London 
Times  (Feb.  24,  1914)  is  here  quoted: 

"At  the  time  the  Government  agreed  to  rescind  the  concession  of  the  Pan- 
American  Transcontinental  Ry.  Co.  it  entered  into  a  new  contract  with 
Messrs.  MacArthur  Brothers,  of  New  York  (who  are  understood  to  be  closely 
related  to  the  Pan-American  Co.  and  have  the  same  local  representative  here), 
for  the  building  of  another  south  to  north  line  which  in  a  certain  measure 
replaces  the  line  that  the  Pan-American  Co.  has  failed  to  build.  .  .  .  The 
proposed  line  is  to  run  from  Florida  in  a  line  almost  direct  north-eastwards 
to  Carpinteria,  on  the  Brazilian  frontier.     The  stipulated  maximum  cost  of 

95 


THE     RAILWAYS    OF    SOUTH 

construction  is  to  be  £5,200  per  kilometre,  which  is  to  include  rolling  stock 
station,  and  all  necessary  installations  and  annexes.  The  contractors  are 
to  receive  a  commission  of  15}^%  on  the  real  cost  of  the  work  and  8%  on 
the  real  value  of  the  rolling  stock.  Three  years  are  allowed  for  the  completion 
of  the  line,  and  the  contractors  will  be  paid  monthly,  according  to  work  done, 
in  5%  Railway  bonds,  which  they  will  receive  at  90%  of  their  face  value. 
Nothing  is  said  in  the  contract  as  to  the  exploitation  of  the  line,  which  there- 
fore remains  open  for  future  decision. 

"Florida,  it  may  be  pointed  out,  is  the  goal  of  the  proposed  State  trunk 
line  from  Montevideo,  the  contract  for  building  which  has  been  allotted  to 
the  Farquhar  syndicate.  Carpinteria  is  identical  with  San  Luis,  the  proposed 
northern  terminus  of  the  Pan-American  line.  Communication  could  be  made 
thence,  via  Bage,  with  the  Brazilian  Railway  system,  but  it  is  hardly  the  most 
convenient  point  for  the  purpose.  The  length  of  the  line  may  be  roughly 
estimated  at  300  kilometres,  or  186  miles.  After  leaving  Florida  it  does  not 
touch  a  single  town  of  the  least  importance,  but  passes  through  a  very  thinly 
populated  pastoral  district,  unable,  at  present,  at  all  events,  to  offer  it  remuner- 
ative traffic.  Its  only  apparent  value  is  that,  some  future  day,  it  may  afford 
communication  between  Montevideo  and  Brazil  over  State-owned  lines 
in  competition  to  that  already  established  over  the  English-owned  railways." 


96 


AND     CENTRAL     AMERICA 
Central  Uruguay  Ry.  of  Monte  Video. 

Avg.  Miles  I  Avg.  Miles 

Year         Oper.  Gross  Receipts  Year        Oper.  Gross  Receipts 

1911-12     966       $5,665,745        £1,133,149        |        1912-13     *975      $6,216,965      £1,243,393 

♦Includes  Central  Uruguay  Ry.  (including  North  Eastern  Line),  271  miles;  C.  U. 
Northern  Extension  Ry.,  182  miles;  C.  IT.  Eastern  Extension  Ry.,  311  miles;  C.  U. 
Western  Extension  Ry.,  211  miles. 

Stock  Outstanding  Bonds  Outstanding 

June  30,  1913  June  30,  1913 

Ordinary $10,000,000        )        *Deb.  Stock  (6%) $6,777,970 

Preference  (5147c) 2,500,000  Western      Extension      Deb. 

^^  |  (4%) 4,791,000 

♦Permanent  6%  Debenture  Stock,  £1,105,594;    67c  Second  Debenture  Stock,  £250,000. 

Capitalization 

(Central  Uruguay  Ry.— Original  Line)  Total  Per  Mile 

Stock                                                                       $12,500,000  $12,820 

Bonds                                                                               11,568,970  11,866 

Total       '    '.'..'.'.'.'.'.'.'.'.'.'.'.'.'.'.'....... 24,068,970  24,686 

Fixed  Charges  below  include  $1,210,035  (£242,007)  representing  the  Traffic  Receipts 
of  Extension  Companies  (Gross,  £505,249)  less  the  amount  retained  by  the  Central  Ry. 
of  Uruguay,  Original  Line  from  the  Gross  Receipts  of  Extension  Companies  in  accordance 
with  their"  Working  Agreement  (£263,242).  (See  Notes.)  Fixed  Charges  also  include 
$280,000  (£56,000)  rent  paid  to  June  30,1913,  and  $17,845  (£3,569)  due  Government  on 
account  of  guarantees  advanced  to  the  North  Eastern  of  Uruguay  Ry. 

Income  Account  Year  Ending  June  30,  1913 

(Central  Uruguay  Ry.  System) 

Average  miles  operated,  975. 

Total Per  Mile 

Gross  Receipts £1,243,393  $6,216,965  $6,376 

Operating  Expenses 669,008  3,345,040  3,431 

Net  Receipts 574,385  2,871,925  2,945 

Other  Income 39,536  197,680  203 

Total  Net  Income 613,921  3,069,605  3,148 

Fixed  Charges 428,179  2,140,895  2,195 

Surplus 185,742  928,710  953 

Operating  Expenses 

Total Per  Mile 

Maintenance  of  Way £184,800             $924,000  $948 

Maintenance  of  Equipment 240,963            1,204,815  1,236 

Traffic,  Telegraph  and  Transportation  Expenses    .            166.788               833,940  855 

General  and  Miscellaneous  Expenses 76,457               382,285  3,392 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  53.8  per  cent. 

Other  Income  above  includes  $164,055  (£32,811)  interest  on  6%  Debenture  Stock  of 
Central  Uruguay  Western  Extension  Ry. 

Appropriation  of  Gross  Income 

1912-13 

For  Maintenance  Expenses 33  .2% 

For  Traffic,  Transportation  and  General  Expenses 19.0% 

For  Fixed  Charges 33.3% 

For  Surplus 14  .  5% 

100.0% 

1912-13 

Ton  miles  per  mile  of  road 156,394 

97 


738,143 

*$3,690,715 

405,766 

2,028,830 

332,377 

1,661,885 

39,536 

197,680 

371,913 

1,859,565 

186,171 

930,855 

185,742 

928,710 

THE     RAILWAYS     OF     SOUTH 

NOTES 

This  company  operates  a  system  of  railways  located  wholly  in  Uruguay. 
The  Combined  System  as  it  exists  to-day  operates  by  far  the  largest  railway 
mileage  in  the  Republic. 

The  System  is  operated  in  four  sections  as  follows: 

1.  Central  Uruguay  Ry.  (including  North  Eastern  Line) 271  Miles 

2.  "  "         Northern  Extension  Ry 182      " 

3.  "  "         Eastern  Extension  Ry 311      " 

4.  "  "         Western  Extension  Ry 211      " 

The  Northern,  Eastern  and  Western  Extensions  are  worked  by  the  Central 
Uruguay  Ry.  proper  on  a  percentage  basis. 

The  Earnings  of  the  four  companies  for  1912-13,  stated  separately,  were  as 
follows: 

(1)  CENTRAL  URUGUAY  MAIN  LINE 
(Including  North  Eastern  Line) 

Gross  Earnings £738,143 

Oper.  Expenses 

Net  Profit 

Other  Income 

Total  Income 

Fixed  Charges 

Surplus 

*Equal  to  $13,629  per  mile  of  road  operated. 

(2)  CENTRAL  URUGUAY  NORTHERN  EXTENSION  RY. 

Gross  Earnings £147,143  *$735,715 

Total  Net  Income 80,117  400,585 

Surplus 24,997  124.995 

*Equal  to  $4,043  per  mile  of  road  operated. 

(3)  CENTRAL  URUGUAY  EASTERN  EXTENSION  RY. 

Gross  Earnings £251,712         *$1,258,560 

Total  Net  Income 137,501  687,505 

Surplus 60,428  302,140 

*Equal  to  $4,047  per  mile  of  road  operated. 

(4)  CENTRAL  URUGUAY  WESTERN  EXTENSION  RY. 

Gross  Earnings £106,394  *$531,970 

Net  Profit 37,328  fl86,640 

*Equal  to  $2,521  per  mile  of  road  operated. 

|To  meet  the  interest  and  sinking  fund  on  the  £812,600  Debenture  Stock, 
which  are  entitled  to  4%  fixed  interest  and  an  additional  2%  (cumulative) 
if  earned,  the  Central  Uruguay  Ry.  advanced  to  the  "Western  Extension  Ry." 
in  1912-13,  $28,455  (£5,691),  in  accordance  with  the  terms  of  the  Working 
Agreement.  The  "Western  Extension  Ry."  owes  to  the  parent  company  for 
advances  $1,054,400  (£210,880),  and  further  owes  to  the  holders  of  the  6% 
Debenture  Stock  (see  following)  $1,077,265  (£215,453)  account  of  arrears  of 
interest.  The  $1,316,210  (£263,242)  retained  by  the  Central  Ry.  proper,  from 
the  $2,526,245  (£505,249)  Gross  Receipts  for  1912-13  of  the  Eastern,  Northern 
and  Western  Extension  Companies  under  the  Working  Agreements,  repre- 
sented 52.1%  of  their  total  Gross  Receipts  for  the  fiscal  year. 

98 


AND     CENTRAL     AMERICA 

The  main  line  of  the  Central  Uruguay  traverses  the  middle  of  the  country 
from  Montevideo  to  Santa  Izabel,  a  short  distance  beyond  the  Rio  Negro. 
Around  Montevideo,  the  district  for  a  radius  of  about  50  miles  is  highly 
cultivated,  producing  in  addition  to  grain  and  cattle  considerable  quantities 
of  wine  and  fruit.  It  is  perhaps  the  most  populous  part  of  Uruguay,  the 
towns  of  Guadeloupe,  Pando.Las  Piedras,  and  Santa  Lucia  each  having  between 
8,000  and  9,000  inhabitants.  From  the  last-named  a  short  branch,  crossing 
the  Santa  Lucia  river  on  the  longest  railway  bridge  in  Uruguay,  runs  to  San 
Jose,  an  agricultural  centre  with  13,000  inhabitants,  where  the  Western 
Extension  begins.  An  important  item  of  traffic  on  this  branch  is  the  sand 
taken  from  the  Santa  Lucia  river. 

Continuing  north  and  west  the  route  of  the  main  line  lies  through  Florida, 
a  city  with  a  population  of  nearly  11,000,  and  an  agricultural  centre.  Thence, 
to  Santa  Izabel,  the  country  served  is  almost  exclusively  pastoral,  Durazno, 
the  principal  town,  having  approximately  the  same  population  as  Florida. 

The  North-Eastern  line  connects  Montevideo  and  Minas,  the  capital  of 
the  department  of  the  same  name.     Population  about  15,000. 

THE     NORTHERN     EXTENSION. 

This  is  a  prolongation  of  the  Central  of  Uruguay  main  line  from  Santa 
Izabel  to  the  Brazilian  frontier  at  Rivera,  182  miles.  The  region  is  much 
more  scantily  populated  than  in  the  south.  Cardoso,  which  began  existence 
as  a  Germany  colony;  Tambores,  a  center  for  cattle  and  wool,  and  Tacuar- 
embo,  a  town  of  10,000  inhabitants,  are  important  stations.  Across  the 
frontier  from  Rivera  is  the  Brazilian  town  of  Sant'  Anna  do  Livramento, 
whose  five  large  jerked-beef  factories  (saladeros)  furnish  a  large  proportion 
of  the  traffic.  A  link  line  of  three  rails  connects  the  terminus  of  the  Northern 
Extension  with  that  of  the  Sao  Paulo-Rio  Grande  Ry.  (l-meter"gauge),  and  is 
expected  to  stimulate  increased  traffic  in  the  shape  of  timber  from  the  forests 
of  Southern  Brazil.  At  present,  however,  pastoral  products  form  the  bulk 
of  the  freight  traffic. 

THE     EASTERN    EXTENSION. 

The  Central  Uruguay  Eastern  Extension  Ry's.  line  starts  from  a  point  on 
the  North-Eastern  line,  20  miles  out  of  Montevideo,  and  runs  north  and 
east  to  Melo,  with  a  branch,  completed  in  October,  from  Nico  Perez  to  Treinta- 
y-Tres. 

Most  of  the  country  served  by  this  extension  is  well  wooded  and  watered, 
and  large  tracts  of  it  are  suitable  for  agriculture,  which,  in  the  vicinity  of  the 
railway,  is  a  rapidly  growing  industry,  though  pastoral  products  still  form 
the  chief  source  of  traffic.  Melo,  the  capital  of  the  department  of  Cerro  Largo, 
has  a  population  of  some  14,000  inhabitants  and  Treinta-y-Tres,  capital 
of  the  department  of  the  same  name. 

THE    WESTERN     EXTENSION. 

From  San  Jose  the  Western  Extension  traverses  largely  an  agricultural 
country.  There  is  a  branch  from  Mai  Abrigo  to  Colonia.  From  Bizcocha  it 
descends  through  pastoral  country  into  Mercedes,  a  town  of  some  10,000 
inhabitants  on  the  Rio  Negro.  Mercedes  has  a  large  jerked-beef  factory, 
and  also  produces  a  quantity  of  charcoal.  Timber  and  stone  are  other  traffic 
items. 

99 


THE     RAILWAYS    OF    SOUTH 

The  branch  to  Colonia  serves  the  Colonia  Suiza,  a  Swiss  colony  founded 
50  years  ago,  and  now  a  flourishing  center  of  the  dairying  industry. 

The  Preference  Stock  of  the  Central  Uruguay  Ry.  is  entitled  to  dividends 
of  5j^%  per  annum.  Full  dividends  are  being  paid.  The  par  value  of  this 
class  of  stock  is  £10,  and  the  full  authorized  amount  of  stock,  £500.000,  is 
outstanding. 

The  Ordinary  Stock  received  from  the  earnings  of  1912-13,  61  o'  c  in  divi- 
dends (3%,  April;  3j-£%,  October).  £2,000,000  of  this  stock  is  outstanding. 
In  addition  £2,000,000  £10  shares  have  been  authorized  but  had  not  been 
issued  to  September,  1913. 

The  Permanent  6'^  Debenture  Stock  and  the  6%  Second  Debenture 
Stock  are  authorized  to  the  amounts  of  £1,200,000  and  £250,000  respectively. 
£1,105,594  and  £250,000  (the  full  authorized  amount)  of  these  Debenture 
Stocks  had  been  issued  to  June  30,  1913.  Interest  is  payable  on  the  Per- 
manent Debenture  Stock  in  April  and  October.  The  Second  Debenture  Stock 
is  redeemable  at  par. 

The  above  securities  and  £1,000,000  Western  Extension  4f^  Debentures 
constituted  the  capital  of  the  company  as  of  June  30,  1913.  Further  borrow- 
ing powers  amount  to  £466,666  in  addition  to  the  unissued  balance  of  the 
securities  enumerated   above. 

The  North  Eastern  of  Uruguay  Ry.  which  is  operated  directly  by  the 
Central  Uruguay,  under  lease,  paid  during  1912-13  7%  on  its  $2,000,000 
(£400,000)  Preference  Shares  and  7%  on  its  $2,000,000  (£400,000)  Ordinary 
Shares.    This  company  has  no  bonds. 

The  Central  Uruguay  Northern  Extension  Ry.  has  outstanding  $5,000,000 
(£1,000,000)  Share  Capital,  which  received  1%'%  in  1912-13  and  $3,135,750 
(£627,156)  Permanent  5%  Debenture  Stock.  Further  borrowing  powers 
amount  to  £39,516.  This  company  has  recently  constructed  a  short  line  to 
connect  with  the  Brazilian  Railway  system.  This  line  was  officially  opened 
September  1,  1913.  A  bridge  over  the  River  Uruguay  has  been  completed 
so  that  through  traffic  is  now  possible  between  Montevideo  and  Rio  de 
Janeiro. 

The  Central  Uruguay  Eastern  Extension  has  outstanding  $4,300,000 
(£860,000)  Ordinary  Shares  and  a  like  amount  of  the  5%  Preference  Shares. 
$4, 500, 000  (£900,000)  of  each  class  is  authorized.  There  is  also  outstanding 
55,382,105  (£1,076,421)  of  $5,733,330  (£1,146,666)  authorized  5%  Perma- 
nent Debenture  Stock.  The  full  dividend  of  5%  was  paid  on  the  Preference 
Stock  and  4%%  was  paid  on  the  Ordinary  Stock. 

The  Central  Uruguay  Western  Extension  has  not  proven  as  profitable  as 
the  other  lines  comprising  the  System.  Its  earnings  are  growing,  however,  as 
during  the  period  from  1903-4  to  1912—13  the  total  Receipts  have  increased 
from   £41,360  to  £106,394  and  the  Net  Receipts  from  £8,272  to  £37,238. 

The  operated  mileage  during  the  ten  year  period  has  remained  unchanged. 

No  dividends  are  being  paid  on  the  $4,249,000  (£849,800)  stock  of  the 
Western  Extension  Ry.  Of  this  stock,  $3,611,150  (£722,230)  is  owned  by 
the  Central  of  Uruguay,  as  is  also  S4, 063, 500  (£812,700)  (entire  issue)  of  the 
former's  6%  Debenture  Stock.     These  securities  were  received  by  the  parent 

100 


AND     CENTRAL     AMERICA 

company  together  with  $185,500  (£37,100)  Debenture  Stock  since  redeemed, 
in  consideration  for  Capital  Expenditure  to  the  amount  of  $6,486,890  (£l,- 
297,378),  financed  largely  by  the  sale  of  £1,000,000  4%  Western  Extension 
Debentures,  £41,800  of  which  have  been  retired  by  Sinking  Fund  and  can- 
celled. The  $4,063,500  (£812,700)  Debenture  Stock  of  the  Western  Extension 
Ry.  bears  interest  at  the  rate  of  6%  per  annum,  4%  of  which  is  fixed.  (See 
preceding  paragraph.) 

The  terminals  and  the  passenger  station  at  Montevideo  owned  by  the 
Central  Uruguay  are  well  located  and  are  of  great  value.  Practically  all  of 
the  exports  and  imports  of  Uruguay  go  through  this  port  and  the  "  Central  " 
handles  a  very  large  portion  of  this  traffic.  Large  quantities  of  cattle  and  of 
cereals  for  export  and  for  the  markets  of  Montevideo,  are  brought  from  the 
interior  which  in  turn  takes  the  manufactured  articles,  building  material, 
etc.,  imported  from  the  United  States  and  Europe.  The  railway  has  played 
an  important  part  in  the  rapid  development  of  the  Republic. 


Midland  Uruguay  Ry. 


Avg.  Miles  Avg.  Miles 

Year  Oper.  Gross  Receipts  Year  Oper.  Gross  Receipts 

1911-12  283  $582,350        £116,470  1912-13  291         $682,112        £136,422 

Stock  Outstanding  Bonds  Outstanding 

June  30,1913                                                                      June  30,  1913 
Common $3,000,000  Deb.  Stock  (5%) $8,961,275 

Capitalization 

Total Per  Mile 

Stock £600,000          $3,000,000  $10,309 

Bonds 1,792,255            8,961,275  30  795 

Total 2,392,255          11,961,275  41,104 

Fixed  Charges  below  include  $68,420  (£13,685)  paid  account  of  Sinking  Fund. 

Income  Account  Year  Ending  June  30,  1913 
Average  miles  operated,  291. 

Gross  Receipts 

Operating  Expenses 

Net  Receipts 

Other  Income 

Total  Net  Income 

Fixed  Charges 

♦Surplus 


Operating  Expenses 

Maintenance  of  Way  and  Telegraph 

Maintenance  of  Equipment  and  Loco.  Pwr 

Traffic  Expenses.  .  .  .' 

General  Expenses 


Total 

Per  Mile 

£136,422 

$682,112 

$2,344 

97,433 

487,164 

1,674 

38,989 

194,948 

670 

70,892 

354,458 

1,218 

109,881 

549,406 

1,888 

109,881 

549,406 

1,888 

i 

£27,569 

$137,844 

$474 

36,152 

180,760 

621 

21,549 

107,745 

370 

12,163 

60,815 

209 

Ratio  of  Operating  Expenses  to  Operating  Revenues,  71.5  per  cent. 

•No  surplus  was  earned  in  1912-13.  However  the  sum  of  $21,392  (  £4,278)  was  credited 
to  Income,  being  the  balance  carried  forward  from  last  year's  account.  From  this  amount 
$20,000  (  £4,000)  was  transferred  to  Special  Reserve  Fund  for  Maintenance. 

Other  Income  above  includes  $354,460  (£70,892)  Guarantee  from  the  Government  of 
Uruguay. 

Appropriation  of  Gross  Income 

„      ..   .  1912-13 

For  Maintenance  Expenses 30. 7% 

For  Traffic,  Transportation  and  General  Expenses 16.3% 

For  Fixed  Charges 53  0% 

For  Surplus 0  0% 

100.0% 
101 


THE     RAILWAYS    OF     SOUTH 

NOTES 

This  railway  starts  at  Paso  de  los  Toros  (on  the  Central  Uruguay)  located 
near  Rio  Negro,  the  capital  of  the  province  of  that  name,  and  runs  northward 
and  westward.  At  Tres  Arboles  junction  is  afforded  with  a  36-mile  branch 
completed  in  April,  1913,  and  known  as  the  Midland  Uruguay  Extension 
Ry.,  which  runs  to  Piedra  Sola  where  it  joins  the  Central  Uruguay  System. 
At  Algorta  to  the  westward,  a  branch  87  miles  in  length,  constructed  within 
the  last  two  years,  leaves  for  the  Lemco  Company's  port,  town  and  factories 
of  Fray  Bentos,  where  on  an  average  about  175,000  head  of  cattle  are 
slaughtered  annually.  From  Algorta  the  main  line  continues  on  to  Paysandu, 
(next  to  Montevideo  in  commercial  importance)  and  thence  due  north  to 
Salto.     Paysandu   and  Salto  have  each  over  20,000  inhabitants. 

The  branch  to  Fray  Bentos,  which  has  been  operated  since  July,  1911, 
has  increased  the  working  results  of  the  system. 

No  dividends  are  paid  on  the  Ordinary  Stock. 

The  £586,330  5%  Prior  Lien  Debenture  Stock  will  be  wholly  redeemed  at  par 
by  Sinking  Fund  operations  by  1947.  £13,670  of  this  Debenture  Stock  had 
been  redeemed  on  June  30,  1913,  as  had  £44,075  of  the  £1,250,000  5%  Deben- 
ture Stock.     The  capital  authorized  by  the  company  has  all  been  issued. 


North  Western  of  Uruguay  Ry. 

This  company,  incorporated  1882,  has  outstanding  the  following  securities: 

Ordinary  Stock £120,120  $600,600 

First  Preferred  Stock  6%  (non-cum.) 583,850  2,919,250 

Second  Preferred  Stock  5%  (non-cum.) 293,173  1,465,658 

Perpetual  Debentures  (1882  issue) 400,000  2,000,000 

Second  Debentures  6%  (red.  110) 53,375  266,875 

£1,450,518         $7,252,590 

Dividends  have  been  paid  on  the  First  Preference  Stock  in  recent  years 
as  follows: 

1905-6  1906-7  to  1908-9         1909-10     1910-1 1  and  191 1-12     1912-13 
1%  2%  annually  2V2%  3%  annually  2Y2% 

No  dividends  are  being  paid  on  the  Second  Preference  and  Ordinary  Stocks. 

From  Salto,  between  which  point  and  Monte  Caseros  rapids  render  the 
River  Uruguay  unnavigable,  the  North-Western  of  Uruguay  Ry.  runs  west 
and  north  to  the  Brazilian  frontier  at  Quarahim,  where  the  river  of  the  same 
name  separates  it  from  the  Brazil  Great  Southern  Ry.  (metre  gauge).  Com- 
munication between  them  is  at  present  effected  by  ferry-boat,  but  within  a 
few  months  the  river  should  be  spanned  by  a  lengthy  international  bridge, 
now  being  built  by  a  company  in  which  both  lines  are  interested.  (See  Brazil 
Great  Southern  Ry.)     The  length  of  the  North- Western  is  113  miles. 

The  country  served  is  agricultural  and  pastoral,  and  is  particularly  well 
timbered,  while  many  districts  are  rich  in  minerals.     The  line  carries,  espec- 

102 


AND     CENTRAL     AMERICA 

ially,  sheep  to  the  Montevideo  refrigerating  plants  and  cattle  to  Fray  Bentos, 
and  the  bulk  of  the  remaining  traffic  is  made  up  of  agricultural  products. 
At  Zania  Honda  the  company  have  founded  an  agricultural  colony  which 
promises  to  do  well. 

The  working  results  show  a  steady  increase  of  traffic.  For    1910-11   and 
1911-12  they  were  as  follows: 

Gross 
Receipts.  Expenditure.  Profit. 

1910-11 $352,440  $246,565  $105,875 

1911-12 372,995  248,585  124,410 

The    railway    operates    under    a    Government    Guarantee.      The    property 
belongs  to  the  company  in  perpetuity. 


Uruguay  East  Coast  Ry. 

This  line,  78  miles  in  length,  starts  from  Olmos,  a  point  on  the  Central 
Uruguay  North-Eastern  Ry.,  and  has  its  terminus  at  Maldonado,  a  coastal 
town  in  the  department  of  the  same  name.  Much  of  its  traffic  is  due  to  the 
fact  that  Punta  del  Este  and  Piriapolis,  close  to  Maldonado,  are  seaside 
resorts  for  the  people  of  Montevideo  and  Buenos  Ayres,  but  the  railway  also 
serves  a  good  pastoral  and  agricultural  country.  The  prospects  of  this  short 
line  have  been  distinctly  favorable  since  the  opening,  in  December,  1910,  of 
its  extension  from  La  Sierra  to  the  coast.  The  railway  has  under  consideration 
a'n  extension  from  San  Carlos  on  the  main  line  northward  to  Rocha.  From 
the  fishery  lately  established  in  the  vicinity  of  Maldonado  an  important 
item  of  traffic  may  possibly  be  developed.  The  East  Coast  Ry.  enjoys  a 
guarantee  from  the  Government,  who  have  the  right  to  purchase  the  line 
under  certain  conditions  on  terms  favorable  to  the  railway.  Working  results 
for  1910-11  and  1911-12,  were  approximately  as  follows: 

Gross  Net 

Receipts  Expenses  Receipts 

1910-11 $128,218  $99,604  $28,614 

1911-12 176,607  143,443  33,164 

The  1912-13  earnings  were  not  available  at  the  date  ot  going  to  press. 
The  Surplus  after  Interest,  Sinking  Funds,  etc.,  amounted  to  $1,680  (£336). 

The  company's  capital  at  June  30,  1913,  was  as  follows: 

Stock  (par  £l) £124,640  $623,200 

^First  Charge  5%  Debentures 316,000  1,580,000 

Perpetual  4%  Debenture  Stock 184,980  924,900 

Total  Capital £625,620         $3,128,100 

•Interest  April  and  October;  principal  repayable  within  37  years  by-  a 
Sinking  Fund  which  purchases  bonds  in  the  open  market  at  par  or  less  or  draws 
the  same  at  par. 

The  Uruguay  Ry.  is  to  build  a  branch  to  connect  with  this  line. 

103 


* 


THE     RAILWAYS     OF     SOUTH 
Uruguay  Northern  Ry. 

Avg.  Miles  Avg.  Miles 

Year  Oper.  Gross  Receipts  Year  Oper.  Gross  Receipts 

1911-12  71  $139,930  £27,986  1912-13  71  $150,985  £30,197 

Stock  Outstanding  Bonds  Outstanding 

June  30,  1913  June  30,  1913 

Common $500,000        |        Debenture  Stock $2,492,010 

♦Preferred  (7%) 1,250,000        [ 

♦Cumulative. 

Capitalization      Total Per  Mile 

Stock £350,000          $1,750,000  $24,648 

Bonds 498,402            2,492,010  35,099 

Total 848,402            4,242,010  59,747 

Income  Account  Year  Ending  June  30,  1913 

Average  miles  operated,  71 

Total Per  Mile 

Gross  Receipts £30,197  $150,985  $2,126 

Operating  Expenses 19,230  96,150  1,354 

Net  Receipts 10,967  54,835  772 

Other  Income 16,897  84,485  1,190 

Total  Net  Income 27,864  139,320  1,962 

Fixed  Charges...'. 22,592  112,960  1,591 

Surplus 5,272  26,360  371 

Operating  Expenses 

Maintenance  of  Way  and  Telegraph £6,164  $30,820  $434 

Maintenance  of  Equipment  and  Locomotive  Power  6,199  30,995  436 

Traffic  Expenses 3,474  17,370  245 

General  Expenses 3,393  16,965  239 

Ratio  of  Operating  Expenses  to  Gross  Receipts  63.7  per  cent. 

Other  Income  above  includes  $84,480  Guarantee  from  the  Government  of  Uruguay  (less 
Income  Tax).    See  Notes  regarding  this  guarantee. 

Appropriation  of  Gross  Income  1912-13 

For  Maintenance  Expenses 26.2% 

For  Traffic,  Transportation  and  General  Expenses 14.6% 

For  Fixed  Charges 48.0% 

For  Surplus 11. 2% 


100.0% 

NOTES. 

This  company  has  outstanding  stock  and  debentures  as  follows: 

Outstanding. 

Ordinary  Stock  (par  £20) $500,000      £l00,000 

7%  Cumulative  Pfd.  Stock 1,250,000        250,000 

Perpetual  Debenture  Stock 2,247,000        449,400 

5%  Prior  Lien  Deb.  Stock 245,010  49,002 

No  dividends  are  being  paid  on  the  ordinary  stock.  2%  was  paid  on  the 
preferred  stock  in  1912-13  as  against  1%%  paid  in  1911-12.  The  preferred 
stock  is  entitled  to  cumulative  dividends  up  to  7%  per  annum.  To  June  30, 
1913,  $1,702,115  (£340,423)  dividends  were  in  arrears;  these  dividends  being 
repayable  out  of  future  profits  (if  earned). 

The  Perpetual  Debenture  Stock  is  entitled  to  3}/£%  fixed  interest  and  to 
%  of  any  net  profits  up  to  £8,561  12s.  lOd.  per  annum.  This  profit  (£5,707 
15c.  2d.)  and  the  3}^%  made  the  total  interest  for  the  year  £4  15s.  4d. 

104 


AND     CENTRAL     AMERICA 

The  payments  made  by  the  Government  on  account  of  the  Guarantee 
(which  expires  1925)  are  repayable  out  of  the  company's  net  earnings  in 
excess  of  6%  on  $25,000  (£5,000)  per  kilometer  on  a  total  length  of  114  kilo- 
meters (71  miles).  The  interest  on  the  Perpetual  Debenture  stock  will  revert 
to  5%  (the  original  rate)  when  the  guarantees  are  all  repaid.  The  maximum 
annual  guarantee  by  the  Government  under  the  terms  of  the  agreement  is 
£19,985. 

The  5%  Prior  Lien  Debenture  Stock  has  been  issued  to  the  amount  of 
£60,000  of  which  £10,998  had  been  redeemed  to  June  30,  1913,  and  was  held 
in  trust  for  the  Company. 

£10,000  6%  Perpetual  Debenture  Stock  was  formerly  outstanding,  but 
has  been  redeemed  and  is  held  in  trust  for  the  company.  An  additional 
£15,000  of  this  Debenture  Stock  is  authorized  but  has  never  been  issued. 

The  Uruguay  Ry.  (controlled  by  the  Brazil  Ry.)  had  in  1913  a  large  interest 
in  this  property. 

This  railway  extends  from  Isla  de  Cabellos,  on  the  Northwestern  Ry.  of 
Uruguay,  to  San  Eugenio,  on  the  frontier  with  Brazil.  The  latter  town 
(population  about  11,000)  is  the  center  for  a  large  cattle  district,  there  being 
several  jerked  beef  factories  in  or  near  the  place. 


105 


THE     RAILWAYS     OF     SOUTH 


VENEZUELA. 


NOTES. 


Venezuela,  having  a  population  of  2,800,000,  is  not  well  provided  with 
railway  facilities.  This  country  at  the  close  of  1912  had  less  than  550  miles 
of  railway;  one  to  every  1,150  square  miles,  the  total  area  of  the  country 
being  about  594,000  square  miles.  The  large  coast  line  and  the  Orinoco,  with 
its  many  tributaries,  are  partially  responsible  for  this.  However,  the  Republic 
has  room  for  a  considerably  larger  mileage  of  railway  lines. 

A  summary  of  the  Venezuelean  railway  situation  in  1912  is  given  by  the 
following  table: 

Mile-  Pass.  Freight  Gross  Expenses. 

Railways.                        age.  carried.  revenue. 

Tons. 

*La  Guaira  and  Caracas 23  78,565  61,570  $494,427  $217,257 

Great  Ry.  of  Venezuela 111  194,840  46,917  531,257  299,692 

Maiquetia  to  Macuto 5  77,382  None.  14,633  11,635 

♦Venezuela  Central  Ry 34  215,367  28,816  122,788  77,866 

♦Puerto  Cabello  &  Valencia          34  28,042  34,861  202,839  107,995 

♦Bolivar 109  19,933  38,733  458,399  265,080 

Caranero 34  11,594  7,009  32,629  31,889 

LaVela&Coro 8  731  3,207  7,489  7,087 

Guanta 25  4,248  2,837  13,544  15,421 

La  Ceiba 51  5,974  23,205  201,888  112,405 

Tachira 71  8,139  25,390  357,218  167,660 

Santa  Barbara  &  El  Vigia...          23  5,678  11,914  68,909  38,071 

Total 528     650,493     284,459    $2,506,020    $1,352,058 


The  four  railways  enumerated  (*)  are  fully  described  elsewhere.  The 
earnings  as  stated  in  the  annual  reports  of  these  four  companies  vary. slightly 
from  the  figures  given  above. 

The  Great  Ry.  of  Venezuela  (a  German  owned  line),  extends  from  Caracas, 
the  Capital,  along  the  high  mountain  slopes  of  Las  Mostazas  and  through 
the  valley  of  Aragua  to  Valencia.  There  are  about  212  bridges  and  86  tunnels 
along  the  line,  the  construction  of  which  was  very  costly.  The  railway  handles 
a  fair  amount  of  produce  raised  along  the  line  and  shipped  to  Caracas,  Valencia, 
Victoria,  etc. 

The  Maiquetia  to  Macuto  Ry.  extends  from  the  suburbs  of  La  Guaira  to 
Macuta,  the  principal  seaside  resort  of  Venezuela.  It  handles  passenger 
traffic  only. 

The  Carenero  Ry.  (built  in  1884),  connects  the  port  of  Carenero  (to  the  East 
of  Caracas)  with  the  towns  of  Higuerote,  Rio  Chico  and  Guapo.  Cattle 
form  its  principal  source  of  traffic  although  coffee,  cocoa  and  other  tropical 
products  are  handled  in  fair  quantities. 

106 


AND     CENTRAL     AMERICA 

The  La  Vela  &  Coro  Ry.  (owned  locally),  is  a  small  unimportant  line, 
operating  from  the  town  of  Coro  to  the  port  of  La  Vela  in  the  northwestern 
part  of  the  country.     The  traffic  handled  by  this  road  is  very  light. 

The  Guanta  Ry.  (not  a  particularly  profitable  line)  connects  the  port 
bearing  that  name  (eastward  of  La  Guaira)  with  Barcelona,  a  city  of  15,000 
inhabitants,  (a  place  of  some  importance),  and  the  coal  mines  of  Naricual. 

The  La  Ceiba  Ry.  extends  from  the  port  of  Ceiba  on  Lake  Maraicibo  in  an 
easterly  direction  to  Motatan  in  the  State  of  Merida.  This  line,  (built  in  the 
early  eighties  by  French  engineers  but  owned  locally),  is  about  50.5  miles 
in  length,  and  earns  approximately  $8,000  per  mile  gross. 

The  Tachira  Ry.  (another  locally  owned  line),  was  built  in  1893,  and  ranks 
third  in  mileage  and  fourth  in  gross  earnings  among  the  railways  of  Venezuela. 
It  extends  from  Encontrados  on  the  Catatumba  River  (a  tributary  of  Lake 
Maracaibo)  to  Uraca,  near  the  boundary  line  with  Colombia,  and  has  but  few 
heavy  grades,  passing  as  it  does  through  an  easy  country.  The  district  served 
is  a  rich  one,  capable  of  considerable  development,  and  there  is  also  handled 
traffic  destined  for  Cauca  and  other  points  in  Colombia. 

The  Santa  Barbara  El-Vigia  line  is  23  miles  in  length  and  operates  between 
these  two  points.  An  extension  is  projected  to  Merida.  For  a  while  this 
railway  was  practically  abandoned,  but  operations  are  now  being  carried 
on  with  some  success. 

There  is,  in  addition  to  the  above  mileage,  a  small  line  5  or  6  miles  long, 
extending  from  the  port  of  Guanaco  in  the  Delta  of  the  Orinoco  River  to  the 
Venezuelan  Pitch  Lake,  which  covers  over  1,000  acres,  and  from  which 
is  taken  25,000  tons  of  asphalt  annually.  The  railway  is  owned  by  the 
New  York   &   Bermudez  Co. 

About  $40,000,000  is  said  to  be  invested  in  Venezuelan  Railways. 

The  foreign  trade  of  Venezuela  for  1912  consisted  of  $25,260,908  exports 
and  $20,568,939  imports. 


107 


THE     RAILWAYS     OF     SOUTH 
Bolivar  Ry. 

Avg.  Miles 
Year  Oper.  Gross  Receipts 

1912-13  110  $519,041  £103.808 

Stork  Outstanding  Debenture  Stock  Outstanding 

June  30,  1913  June  30,  1913 

Common $3,416,000        |         E 

Preferred  (5 '"f1 1,464,000        | 


Capitalization 


Stock 

Debenture  Stock. 
Total 


Average  miles  operated,  110. 


Gross  Receipts 

Operating  Expenses . 

Net  Receipts 

Other  Income 

Total  Net  Income.  .  . 

Fixed  Charges 

♦Surplus 


Operating  Expenses 


Total— 

Per  Mile 

£976,000 

$4,880,000 

$44,364 

250,000 

1,250,000 

11,363 

1,226,000 

6,130,000 

55,727 

j  June  30, 

1913 

Total— 

Per  Mile 

£103,808 

$519,041 

$4,718 

41,531 

207,654 

1,888 

62,277 

311,387 

2,830 

2,854 

14,271 

130 

65,131 

325,658 

2,960 

15,390 

76,949 

700 

49,741 

248,709 

2,260 

i 

£8,988 

$44,941 

$409 

4,165 

20,824 

189 

28,378 

141,899 

1,290 

Maintenance  of  Way 

Workshop  Maintenance 

Traffic,  Transportation  and  General  Expenses. 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  40.0  per  cent. 

*This  Surplus  before  deducting  $25,000  (£5,000)  appropriated  to  Reserve  for  Renewals 
and  $25,000  (£5,000)  reduction  of  Estate  Development  Expenditure. 

Other  Income  above  includes  $752  (£114)  Net  Earnings  from  Operations  of  Steamers 
and  Wharf  dues,  $4,547  (£919)  Sundry  Receipts.  The  Gross  Receipts  from  Operation  of 
Steamers  (£7.135)  and  Wharf  Dues  (£220)  were  $36,776  and  the  Expenses  including  cost 
of  Operation,  Steamers,  Launches  and  Lighters  Insurance,  etc.,  were  $36,004  (£7,241). 

Appropriation  of  Gross  Income 

1912   13 

For  Maintenance  Expenses 12.3'  '(, 

For  Traffic,  Transportation  and  General  Expenses 26.6% 

For  Fixed  Charges 14.5% 

For  Surplus 46.6% 

100.0  % 

NOTES. 

The  Preference  Shares  are  entitled  to  receive  non-cumulative  dividends  at 
the  rate  of  5%  per  annum  in  priority  to  the  Ordinary  Shares.  The  full  divi- 
dend is  being  paid  on  the  Preference  Shares,  and  in  1912-13,  2%  was  paid 
on  the  Ordinarv  Shares.  $1,500,000  and  $3,500,000  of  the  two  classes  of 
stock  are  authorized  of  which  $1,464,000  (£292,800)  and  $3,416,000  (£683, 
200)   are  outstanding. 

The  Debenture  Stock  bears  interest  at  the  rate  of  6%  per  annum  and  is 
secured  by  a  first  charge  on  the  Company's  property.  $2,000,000  (£400,000) 
is  authorized  of  which  $1,250,000  (£250,000)  was  outstanding  June  30,  1913. 

This  Company  operates  a  line  of  railway  from  the  port  of  Tucacas  on  the 
Caribbean  Sea  to  Barquisimeto,  an  interior  city  of  some  40,000  inhabitants. 
The  line  was  originally  built  from  Tucacas  to  the  Quebrada  (now  Aroa) 
Copper  Mines  (about  50  miles).  Later  this  line  was  amalgamated  with  the 
Southwestern   Ry.   of  Venezuela   which   was   practically  an  extension  of  the 

108 


AND     CENTRAL     AMERICA 

Bolivar  Ry.  (then  known  as  the  Quebrada  Ry.  and  Copper  Co.)  operating 
from  a  point  near  the  terminus  of  the  latter  to  Barquisimeto.  A  branch  line 
(the  San  Felipe  Branch)  is  under  construction;  will  be  about  28.5  miles  in 
length,  and  will  pass  through  what  is  believed  to  be  the  richest  valley  in  Ven- 
ezuela. 

After  leaving  Barquisimeto,  which  is  a  center  for  the  produce  of  the  North- 
ern Andine  Country,  the  railway  begins  a  gradual  climb  until  Duaca  (a  small 
town)  is  reached.  From  this  point  a  valley  capable  of  considerable  culti- 
vation is  traversed.  At  El  Hacha,  where  the  branch  to  the  Aroa  mines  joins 
the  main  line,  the  traffic  is  greatly  increased,  owing  to  the  large  shipments 
of  copper  ore  which  are  sent  to  Tucacas.  A  portion  of  the  line  passes  through 
wild  virgin  forest  country,  which,  back  a  short  distance  from  the  railway,  is 
virtually  an  unexplored  wilderness. 

The  Bolivar  Ry.  owns  an  estate  of  about  250,000  acres  granted  by  the 
Government  of  Venezuela.  The  estate  is  to  be  developed  fully  in  the  near 
future.  In  1912-13  $51,170  (£10,234)  was  expended  towards  the  develop- 
ment of  the  estate. 

A  steamer,  the  "  Barquisimeto,"  and  about  ten  barges,  lighters,  etc.,  are 
owned  and  operated  by  this  Company.  The  results  of  the  operations  of  the 
steamers,  etc.,  will  be  found  on  the  table  page.  The  steamer  is  a  necessity 
owing  to  the  fact  that  Tucacas  is  not  a  custom  port. 

The  principal  commodities  handled  by  the  railway  in  1912-13  were  copper 
ore  (17,236  tons)  and  coffee  (7,891  tons). 

As  of  June  30,  1913,  the  balance  sheet  showed  cash  and  bills  receivable 
$277,823  (£55,565),  general  stores  $188,768  (£37,754)  and  other  Current 
Assets.  Current  and  Accrued  Liabilities  were  $46,952  (£9,390).  $100,000 
(£20,000)  was  reserved  for  Renewals. 


109 


THE     RAILWAYS     OF     SOUTH 


La  Guaira  &  Caracas  Ry. 


*Avg.  Miles 
Year  Oper. 

1911  23 


Gross  Receipts 
£81,805       $409,027 


*Avg.  Miles 
Year         Oper. 
1912  23 


Gross  Receipts 
£101,457        $507,287 


*Gauge,  3  feet. 

Note:  The  Gross  Receipts  for  1913  were  £106,500  ($532,500). 


Stock  Outstanding 

December  31,  1912 

Ordinary $1,750,000 


Bonds  Outstanding 

December  31,  1912 
Deb.  Stock  (5%) $1,850,000 


Capitalization 


Stock 

Debenture  Stock . 
Total 


Average  miles  operated,  23. 

Gross  Receipts  (1913  £106,500). 

Operating  Expenses 

Net  Receipts 

Other  Income 

Total  Net  Income 

Fixed  Charges 

tSurplus 


rotal 

Per  Mile 

£350,000 

$1,750,000 

$76,087 

370,000 

1,850,000 

80,417 

720,000 

3,600,000 

156,504 

mber  31, 

1912 

rotal 

Per  Mile 

£101,457 

$507,287 

$22,056 

44,581 

222,908 

9,692 

56,876 

*284,379 

12,364 

1,874 

9,372 

408 

158,750 

293,751 

12,772 

19,301 

96,507 

4,196 

39,449 

197,244 

8,576 

£9,800 

$49,000 

$2,130 

6,097 

30,487 

1,326 

19,793 

98,962 

4,303 

8,891 

44,459 

1,933 

Operating  Expenses 

Maintenance  of  Way 

JMaintenance  of  Equipment 

Traffic  and  Transportation  Expenses 

General  Expenses 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  41.1  per  cent. 

*$190,980  (£38,196)  previous  year. 

tThis  Surplus  before  deducting  $40,000  (£8,000)  added  to  Reserve  Fund  and  $10,000 
(£2,000)  transferred  to  an  account  against  Depreciation  in  Securities. 

Jin  the  annual  report  this  Account  is  styled  "  Locomotive  Expenses."  The  total 
(£14,044)  included  £7,946  account  "Locomotive  Running."  In  this  table  the  latter 
amount  is  included  under  Traffic  and  Transportation  Expenses. 


Appropriation  of  Gross  Income 


For  Maintenance  Expenses 

For  Traffic,  Transportation  and  General  Expenses. 

For  Fixed  Charges 

For  Surplus 


1912 

Ton  miles  per  mile  of  road 75,600 

Passenger  miles  per  mile  of  road 67,653 


1912 

15.4% 
27.8% 
18.7% 
38.1% 

100.0% 

1911 

58,728 
68.253 


NOTES. 

This  company  has  authorized  and  has  outstanding  $1,850,000  (£370,000) 
5%  Debenture  Stock,  also  35,000  shares  of  a  par  value  of  $50  (£10)  each 
($1,500,000)  of  Ordinary  Stock.  On  December  23,  1912,  an  interim  dividend 
of  3%,  a  further  dividend  of  4%  and  a  bonus  of  1%  was  declared  (total  8%) 
out  of  the  earnings  of  the  calendar  year  1912. 

The  railway  (gauge  3  feet)  operates  between  La  Guaira,  the  principal  port 
of  Venezuela,  and  Caracas,  the  capital  (population  1912,273,000).  The  rail- 
way, although  only  22%  miles  in  length,  is  one  of  the  most  important  lines  in 
the  Republic.     The  cost  of  the  building  of  this  short  line  was  said  to  have 

110 


AND     CENTRAL     AMERICA 

been  in  excess  of  $4,000,000.  There  are  ten  bridges  and  nine  tunnels  along 
the  route  which  is  almost  a  continuous  steep  incline  from  the  coast  to  the 
capital,  the  climb  being  about  5,000  feet,  followed  by  a  descent  to  2,984 
feet,  the  altitude  of  the  Caracas  station.  The  maximum  grade  is  4%  and  the 
sharpest  curve  is  about  43%  radius.  It  would  be  almost  impossible  to  dupli- 
cate the  railway  owing  to  the  nature  of  the  country.  The  company,  while 
it  receives  no  guarantees  from  the  Venezuelan  Government,  has  a  99-year 
monopoly  on  the  traffic  between  La  Guaira  and  Caracas  and  will  retain  the 
property  in  perpetuity. 

In  addition  to  the  payment  of  the  dividend  as  stated  above,  the  company  in 
1912  added  to  Reserve  Accounts,  $40,000  (£8,000),  and  transferred  to  an 
account  against  depreciation  of  securities  $10,000  (£2,000). 

The  Balance  Sheet  as  of  December  31,  1912,  showed  Supplies  and  Furniture 
on  Hand,  $82,218  (£16,444);  Investments  at  Cost,  $164,273  (£32,855); 
Cash,  Bills  and  Money  on  Loan,  $256,393  (£51,279),  and  Sundry  Debit 
Balances  $14,982  (£2,956);  total,  $517,668  (£103,534).  These  compare 
with  Sundry  Credit  Balances  and  Accrued  Interest,  $89,260  (£17,852).  There 
were  also  on  that  date  credit  balances  to  Reserve  Account  (£26,637)  and 
Improvement  and  Renewal  Account  (£29,279)  to  the  amount  of  $279,580 
(£55,916). 


Ill 


THE     RAILWAYS     OF     SOUTH 
Puerto  Cabellos  &  Valencia  Ry. 

*Avg.  Miles  Gross  *Avg.  Miles  Gross 

Year  Oper.  Receipts  |        Year         Oper.  Receipts 

1911  34  $184,600  £36,920  |        1912  34  $208,083  £41,617 

*Gauge  3  ft.  6  in. 

Note:  The  Gross  Receipts  for  1913  were  £43,750  ($218,750). 


Stock  Outstanding 

December  31,  1912 

Ordinary $2,300,000 


Bonds  Outstanding 

December  31,  1912 

*Bonds  (5%) $950,000 

tDeb.  Stock  (5%) 850,000 


*First  Charge  (Income)  coupon  bonds,  $100,000  (£20,000)  of  which  are  in  the  Com- 
pany's Treasury. 

■fSecond  Charge  Debenture  Stock.     Interest  payable  from  Income  up  to  5%,  if  earned. 

Capitalization 

Total Per   Mile 

Stock £460,000          $2,300,000  $67,647 

Bonds  and  Debenture  Stock 360,000            1,800,000  52,941 

Total 820,000            4,100,000  120,588 

Fixed  Charges  below  incluae  $40,561  (£112)  Interest  on  Second  Charge  (Income)  Deben- 
ture Stock. 

Income  Account  Year  Ending  December  31,  1912 
Average  miles  operated  34. 

Gross  Receipts  (1913,  £43,750) 

Operating  Expenses 

Net  Receipts 

Other  Income 

Total  Net  Income 

Fixed  Charges 

Surplus 


Operating  Expenses 


Maintenance  of  Way 

Maintenance  of  Equipment 

Traffic,  Telegraph  and  Transportation  Expenses. 
General  Expenses 


Tota 

£41,617 



$208,083 

Per  Mile 
$6,120 

25,661 

128,303 

3,774 

15,956 

79,780 

2,346 

656 

3,281 

96 

16,612 

83,061 

2,442 

16,575 

82,875 

2,437 

37 

186 

5 

ses 

£6,559 

$32,793 

$965 

4,590 

22,957 

675 

8,680 

43,402 

1,276 

5,832 

29,161 

858 

Ratio  of  Operating  Expenses  to  Gross  Receipts  61.7  per  cent. 

Appropriation  of  Gross  Income 

1912 

For  Maintenance  Expenses 26.4% 

For  Traffic,  Transportation  and  General  Expenses 34.3% 

For  Fixed  Charges 39.2% 

For  Surplus 0.1  % 

100.0% 

1912  1911 

Ton  miles  per  mile  of  road 27,994  21,038 

Passenger  miles  per  mile  of  road 17,169  14,810 

NOTES. 

No  dividends  were  paid  on  the  Ordinary  Stock  in  1912  and  in  1913.  46,000 
shares  of  £10  each,  fully  paid,  have  been  issued  and  are  outstanding. 

The  First  Charge  Coupon  Bonds  bear  interest  at  5%  per  annum.  $950,000 
(£190,000)  have  been  issued  of  which  $100,000  (£20,000)  were  on  December 
31,  1912,  in  the  treasury  of  the  company.  These  bonds  are  redeemable  at 
par  on   12  months'  notice. 

112 


AND     CENTRAL     AMERICA 

The  Second  Charge  Debenture  Stock,  $850,000  (£170,000)  authorized  and 
outstanding,  is  entitled  to  interest  up  to  5%  if  earned.  4%%  was  paid  from  the 
Income  for  the  year  1912.  There  is  a  contingent  liability  for  deficiency  of 
interest  on  the  Second  Charge  Debenture  Stock  which  has  to  be  discharged 
before  payment  of  any  dividend  upon  the  Share  Capital  may  be  made,  except- 
ing out  of  the  Award  made  by  the  Anglo-Venezuela  Mixed  Committee. 

There  is  (the  Company's  report  states)  due  from  the  Venezuelan  Govern- 
ment the  aggregate  sum  of  $1,435,528  (£287,106)  together  with  interest  bring- 
ing the  total  to  about  $1,545,000  (£309,000),  representing  Guarantees  for  the 
years  1903  to  1912  inclusive.  The  efforts  of  the  company  to  bring  about  a 
settlement  of  this  debt  have  not  been  successful. 

This  railway  operates  between  the  City  of  Valencia  (population,  40,000) 
and  Puerto  Cabello  (population,  15,000)  on  the  Caribbean  Sea.  Valencia  is 
the  third  city  in  size  and  Puerto  Cabello  the  third  port  in  importance  in 
Venezuela.  The  gauge  of  the  line  is  3  feet  6  inches.  The  district  served  by 
the  railway  is  quite  fertile  and  capable  of  considerable  development.  Puerto 
Cabello  has  an  excellent  harbor,  entirely  natural,  and  is  a  place  of  considerable 
importance.  The  recent  establishment  of  large  meat  works  at  this  point  should 
greatly  increase  the  cattle  traffic  from  the  Llanos  and  other  parts  of  the  interior 
and  add  largely  to  the  earnings  of  the  railway. 

With  the  exception  of  about  2^  miles,  which  were  built  on  the  cogwheel 
principle,  owing  to  the  steep  gradient  (about  8%),  there  were  none  of  the  en- 
gineering difficulties  in  the  construction  of  the  railway,  such  as  were  encoun- 
tered in  the  building  of  the  La  Guaira  &  Caracas  Ry.  There  are  about  24 
bridges  and  one  tunnel  along  the  route  and  the  construction  is  generally  of 
an  excellent  character. 

The  company  on  December  31,  1912,  owned  11  locomotives,  13  passenger 
train  cars  and  99  freight  and  service  cars. 


113 


THE     RAILWAYS     OF     SOUTH 


Venezuela  Central  Ry. 


Avg.  Miles 

Avg.  Miles 

Year 

Oper. 

Gross  Receipts 

Year 

Oper. 

1906 

$31,860          £6,372 

1910 

1907 

45,295            9,059 

1911 

1908 

50,245          10,049 

1912 

♦34 

1909 

. . . 

58,145          11,629 

Gross  Receipts 

$76,530        £15,306 

96,730  19,346 

125,980  25,196 


♦Approximate;    mileage  since  increased. 

tThe    Gross    Receipts    for   1913    were     approximately    $147,500    (£29,500); 
earnings  for  11  months  were  £27,003,  as  against  £22,437  for  11  months  in  1912. 


the   actual 


Stock  Outstanding 

December  31,  1912 
Ordinary $1,000,000 


Bonds  Outstanding 

December  31,  1912 

♦Debentures  1st  (6%) $601,500 

tDebenture  2nd  (6%) 537,400 


♦Additional  First  Debentures  to  the  amount  of  $20,000   (£4,000)    per  kilometer    were 
authorized  May  29,  1913,  to  build  an  extension  from  Santa  Teresa  to  Ocumare  (22  kilometers) 
tlnterest  dependable  on  Income;   no  interest  was  paid  in  1912. 


Capitalization  Total 

Stock $1,000,000 

Debentures 1,138,900 

Total 2,138,900 

Fixed  Charges  below  include  $8,133  (£1,627)  London  Administration  Expenses. 

Income  Account  Year  Ending  June  30,  1913 

Average  miles  operated  (approximate),  34. 

Total ■ 

Gross  Receipts  (1913,  £29,500) £25,196  $125,980 

Operating  Expenses 15,963  79,815 

Net  Receipts 9,233  46,165 

Total  Net  Income 9,233  46,165 

Fixed  Charges 8,845  44,225 

Surplus 388  1,940 


Operating  Expenses 


Maintenance  of  Way 

Maintenance  of  Equipment 

Traffic  and  Transportation  Expenses. 
General  Expenses 


-Total- 

* 
* 
* 
* 


Ratio  of  Operating  Expenses  to  Gross  Receipts,  63.3  per  cent. 
♦Statistics  not  available. 

Appropriation  of  Gross  Income 

For  Maintenance,  Traffic,  Transportation  and  General  Expenses. 

For  Fixed  Charges 

For  Surplus 


NOTES. 


Fer  Mile 

$29,412 

33,497 

62,909 


Per  Mile 
$3,705 
2,347 
1,358 
1,358 
1,301 
57 


Per  Mile 

* 
* 
* 

* 


1912-13 

63.3% 

35.2% 

1.5% 

100.0% 


The  stock  of  this  company  consists  of  200,000  shares  of  the  par  value  of 
£l.     No  dividends  are  being  paid.    The  full  authorized  amount  is  outstanding. 

The  Debentures  of  this  company  are  divided  into  two  issues.  £155,000 
(par  £10)  of  each  class,  viz.:  First  and  Second  Debentures,  are  authorized,  of 
which  £120,300  (8601,500)  and  £107,480  ($537,400)  had  been  issued  January, 
1913.  6%  is  being  paid  on  the  First  Debentures.  The  Second  Debentures 
are  entitled  to  6%  interest  if  earned.  No  interest  was  paid  on  these  De- 
bentures from  the  surplus  of  1912. 

This  company  operates  a  railway  running  from  Caracas,  the  capital  of 
Venezuela,  to  Santa  Lucia,  Soapire  and  Santa  Teresa  (about  37  miles),  with  a 
branch  from  Ague  de  Maiz  to  Dos  Caminos.     The  line  from  Santa  Lucia  to 

114 


AND     CENTRAL     AMERICA 

Soapire  and  the  Dos  Caminos  branch  were  opened  for  traffic  in  1912,  while 
the  Santa  Teresa  extension  was  not  completed  until  late  in  1913.  An  exten- 
sion has  been  authorized  beyond  Santa  Teresa  (located  on  the  River  Tuy) 
to  Ocumare,  the  capital  of  the  State  of  Miranda  (about  14  miles).  Ocumare 
has  a  population  of  about  8,000  and  is  a  center  for  the  traffic  of  the  vast  plains, 
the  Llanos,  that  lie  to  the  southward  between  the  Tuy  and  Orinoco  Rivers. 
The  management  estimates  that  on  the  completion  of  this  section  an  annual 
increase  in  the  net  receipts  amounting  to  $95,000  (£19,000)  will  result.  The 
cost  of  this  extension  and  the  necessary  rolling  stock  will  be  approximately 
$497,500  (£95,500),  which  sum  will  be  provided  by  the  sale  of  6%  First 
Debentures. 


115 


PART  II. 


CENTRAL  AMERICA,  MEXICO 
AND  PANAMA 


RAILWAYS  OF  SOUTH  AND  CENTRAL  AMERICA 


MEXICO. 


Mexico  stands  eleventh  among  the  world's  nations  in  its  railway  mileage. 
During  the  Diaz  regime  this  country,  thanks  to  the  far-sightedness  of 
its  administration,  its  wonderful  resources  and  to  American,  British  and 
other  foreign  capital,  the  great  republic  was  striding  forward  at  a  rapid  pace. 
Due  likewise  to  foreign  capital  and  the  faith  of  the  bankers  of  other  nations 
in  Mexico's  future,  a  readjustment  of  the  finances,  etc.  and  the  consolidation 
of  the  Mexican  Central  R.  R.  and  National  R.  R.  of  Mexico  into  the  National 
Rys.  of  Mexico,  was  successfully  carried  out. 

Following  the  successful  unification  of  the  two  principal  highways  of 
commerce  in  the  Republic,  and  the  establishment  of  good  credit,  railway 
building  for  a  while  went  ahead  with  leaps  and  bounds.  The  Southern 
Pacific  Company  laid  plans  for  the  building  of  over  1,500  miles  along  the 
West  coast  (which  lines  were  nearly  completed)  the  North  Western  Ry.  of 
Mexico,  controlled  by  the  Farquhar-Pearson,  interests,  was  completed  from 
opposite  El  Paso,  Texas  to  Chihuahua,  etc.,  (about  366  miles),  the  Kansas 
City,  Mexico  &  Orient  Ry.  of  Mexico,  was  partly  finished,  and  other  lines, 
north  and  south  were  developed  or  projected.  The  National  Rys.  of  Mexico 
merged  into  its  system  the  Mexican  International  R.  R.  and  as  described  in 
the  portion  of  this  chapter  containing  its  statistics,  etc.,  acquired  large  interests 
in  the  shares  of  other  companies. 

Following  the  Madero  Revolution  in  1910,  and  the  series  of  Revolutions 
which  have  since  followed,  railway  development  has  come  to  a  standstill. 
Traffic  on  most  of  the  lines,  particularly  on  those  operating  in  the  north  and 
west,  has  been  demoralized,  cars  and  buildings  have  been  burned,  bridges 
dynamited  and  many  miles  of  tracks  torn  up.  The  result  has  been  that  not 
only  have  dividends  been  reduced  or  passed,  but  interest  on  bonds  defaulted 
as  well.  The  National  Rys.  of  Mexico  have  been  compelled  to  issue  interest 
bearing  scrip  instead  of  making  payment  of  interest  on  its  bonds  and  its  credit 
has  been  virtually  destroyed. 

There  are  about  16,000  miles  of  railway  in  the  Republic,  a  large  majority 
of  which  mileage  is  the  standard  (American)  4  ft.  8^  in.  gauge. 

The  area  of  Mexico  is  767,000  square  miles  and  the  population  upwards 
of  15,000,000,  thus  ranking  fourth  in  area  and  third  in  population  among  the 
Republics  of  North  and  South  America. 

Among  the  railways  not  mentioned  on  the  following  pages  we  will  briefly 
enumerate  the  following:  (1)  Kansas  City,  Mexico  &  Orient  Ry.  of  Mexico, 
several  disjointed  portions  of  which,  with  a  total  mileage  of  about  280  miles, 
have  been  completed.  This  railway  forms  part  of  the  Kansas  City,  Mexico 
&  Orient  Ry.,  projected  by  Mr.  A.  E.  Stillwell,  an  American,  who  undertook 
to  build  a  direct  through  line  from  Kansas  City,  Mo.,  to  Port  Stillwell  or 
Topolobampa,  State  of  Sinaloa,  Mexico,  on  the  Gulf  of  California.  The 
Mexican   section   of.  the   railway   was   surveyed   and   partly   completed   from 

119 


THE     RAILWAYS     OF     SOUTH 

Presido  del  Norte  on  the  Texan  border,  via  Chihuahua  to  Port  Still- 
well.  The  undertaking  recently  met  with  difficulties  necessitating  the 
appointment  of  Receivers  for  the  Company.  (2)  The  Mexican  North 
Western  Ry..  El  Paso  to  Chihuahua  (about  366  miles).  Owing  to  the 
Revolution,  this  railway  has  been  practically  demolished,  and  its  finances 
have  had  to  be  readjusted,  owing  to  inability  to  pay  interest  on  issues 
of  bonds.  No  statement  of  earnings  have  been  issued  since  1911.  (3) 
and  (4)  Parral  &  Durango  Ry.  (66  miles)  and  Potosi  &  Rio  Verde  Ry. 
(40  miles).  Both  of  these  railways  were  built  to  serve  mining  properties. 
The  first  named  is  part  standard  and  part  narrow  gauge,  and  the  latter  entirely 
narrow  gauge.  (5)  The  United  Rys.  of  Yucatan.  This  company  operates 
about  505  miles  of  railway  in  Yucatan.  It  has  outstanding  about  Si  1,500.000 
stock  and  £825,000  First  Mortgage  5%  bonds  due  1950. 


120 


AND     CENTRAL     AMERICA 
Interoceanic  Ry.  of  Mexico. 

(Acapulco  to  Vera  Cruz) 


Avg.  Miles 

Avg.  Miles 

Year 

Oper. 

Gross 

Year 

Oper. 

Gross 

1905-6 

736 

$3,230,165 

1909-10 

878 

$3,993,649 

1906-7 

736 

3,596,462 

1910-11 

1,033 

4,432,141 

1907-8 

736 

3,850,553 

1911-12 

1,024 

4,481,578 

1908-9 

734 

3,359,364 

1912-13 

*1,031 

4,560,695 

♦Actual   mileage  operated  June  30,   1913,   1,047   miles,   this   includes   Interoceanic   Ry. 
(594  miles);  Mexican  Eastern  Ry.  (140  miles);  and  Mexican  Southern  Ry.  (313  miles). 

Stock  Outstanding  Bonds  Outstanding 

June  30,  1913  June  30,  1913 


Ordinary $8,500,000 

Preference  1st  (5%  ) 7,000,000 

Preference  2d  (4%) 5,000,000 


Deb:  Stock  (4%,) $5,750,000 

2d  Deb.  Stock  (4J<£%) 6,500,000 

*"B"  Deb.  Stock  (7%) 2,347,295 


Per  Mile 

$4,560,694 

$4,424 

2,933,013 

2,845 

♦1,627,681 

1,579 

40,680 

39 

*1,668.261 

1,618 

1,214,980 

1,178 

*453,281 

440 

♦Interest  payable  if  earned. 

Capitalization 

Total  Per  Mile 

Stock $20,500,000  $19,884 

Debenture  Stock 14,597,295  14,158 

Total 35,097,295  34  042 

Fixed  Charges  below  include  $518,800  (£103,760)  for  rentals  (including  $100,000  for  rental 
of  Mexican  Eastern  Ry.  and  $418,800  for  rental  of  Mexican  Southern  Ry.)  and  $164,310 
(£32,862)  interest  on  1%  "B"  (Income)  Debenture  Stock. 

Income  Account  Year  Ending  June  30,  1913 
Average  miles  operated,  1,031. 

Total 

Gross  Receipts 

Operating  Expenses 

♦Net  Receipts 

Other  Income £8,136 

♦Total  Net  Income 

Fixed  Charges £242,996 

♦Surplus 

Operating  Expenses 

Maintenance  of  Way 

Maintenance  of  Equipment 

Transportation  Expenses 

General  Expenses 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  64.3  per  cent. 

♦These  figures  vary  slightly  from  those  stated  in  the  annual  report  of  the  company, 
owing  to  the  use  of  a  slightly  different  basis  of  exchange  ($0.50  U.  S.  Gold  to  $1.00  Mexican 
here  used).  The  annual  report  showed  Net  Operating  Revenue  ($3,355,362  Mexican), 
£322,721;  Other  Income,  £8,136;  Charges  (including  interest  for  year  on  1%  "B"  Debenture 
Stock)   £242,996;  Surplus,   £87,860. 

Appropriation  of  Gross  Income 

1912-13 

For  Maintenance  Expenses 24.2% 

For  Traffic,  Transportation  and  General  Expenses 39.5'  ; 

For  Fixed  Charges 26. !', 

For  Surplus 9.9% 

100.0% 

1912-13 

Ton  miles  per  mile  of  road 108,413 

121 


$569,106 

$552 

548,090 

531 

1,591,633 

1,544 

224,184 

218 

THE     RAILWAYS     OF     SOUTH 

NOTES 

As  of  June  30,  1913,  1,047  miles  of  road  were  owned  or  leased,  as  follows: — 
Interoceanic  Ry.,  594  miles;  Mexican  Eastern  Ry.,  140  miles;  Mexican 
Southern  Ry.,  313  miles. 

The  4%  Debenture  Stock,  $5,750,000  (£1,150,000)  of  which  is  authorized 
and  outstanding,  is  a  first  charge  on  the  property.  The  $6,500,000  (£l,300,- 
000)  4j^%  Debenture  Stock  is  a  second  charge  on  the  propertv,  following 
which  comes  the  7%  "B"  Debenture  Stock  (£470,000  authorized,  £469,459 
outstanding),  which  is  entitled  to  7%  per  annum  if  earned.  The  full  interest 
was  paid  in  1912-13  on  the  "B"  Debenture  Stock. 

The  First  Preference  Stock  (£1,400,000  authorized  and  outstanding)  is 
entitled  to  5%  per  annum  in  priority  to  the  Second  Preference  Stock.  The 
latter  stock  is  entitled  to  4%  per  annum  in  priority  to  the  ordinary  stock. 
4%  was  paid  on  the  First  Preference  Stock  in  1912-13,  as  against  5%  paid  in 
1911-12.  No  dividend  was  paid  on  the  Second  Preference  Stock  in  1912-13; 
2%  was  paid  in  1911-12.    The  Second  Preference  Stock  has  no  vote. 

The  National  Rys.  of  Mexico  owns  £1,310,500  Ordinary  Stock,  £142,800 
First  Preference  Stock;  and  £102,000  Second  Preference  Stock  of  this  company. 

The  Interoceanic  Ry.  of  Mexico  transferred  from  the  surplus  for  1912-13, 
$165,425  (£33,085)  to  Reserve  Account  to  protect  advances  under  the  agree- 
ment with  the  Vera  Cruz  Terminal  Co.  by  this  railway  and  by  three  other 
railways  entering  Vera  Cruz,  to  make  up  any  amount  by  which  the  Revenue 
of  the  Terminal  Co.  fell  short  of  its  Working  Expenses  and  Debenture  Interest. 

Owing  to  the  Revolution  in  Mexico  the  Net  Profits  of  the  Mexican  Southern 
Ry.  (leased)  were  only  £58,095  or  £25,665  less  than  the  Rental. 


122 


AND     CENTRAL     AMERICA 


Mexican  Ry. 


♦Estimated. 


Year 
1912 


Avg.  Miles 

Oper. 

374 


Gross 
$4,377,509 


Surplus 
*$1,649,528 


Stock  Outstanding 

December  31,  1912 

Ordinary $11,273,600 

1st  Preference  (8  %) 12,770,500 

2d  Preference  (6<7,) 5,059,800 


Bonds  Outstanding 

December  31,  1912 
Debenture  Stock  (6  %) . . . 
2d  Debentures 


$10,000,000 
2,445,000 


Capitalization 


Stock £5,820,780 

Bonds 2,489,000 

Total 8,309,780 


-Total- 


$29,103,900 
12,445,000 
41,548,900 


Income  Account  Year  Ending  December  31,  1912 

Average  miles  operated,  374. 


Operating  Revenues 

Operating  Expenses 

Net  Operating  Revenues. 

Other  Income 

Total  Net  Income 

Fixed  Charges 

♦Surplus 


Maintenance  of  Way 

Maintenance  of  Equipment. 
Transportation  Expenses. . . 
General  Expenses 


Operating  Expenses 


Total 

$4,377,509 

2,010,707 

2,366,802 

*10,226 

*2,377,028 

*727,500 

*1,649,528 


$308,232 

376,726 

1,136,866 

188,883 


Ratio  of  Operating  Expenses  to  Operating  Revenues  45.9  per  cent. 
♦Estimated;  approximately  correct. 

Appropriation  of  Gross  Income 


For  Maintenance  Expenses 

For  Traffic,  Transportation  and  General  Expenses. 

For  Fixed  Charges 

For  Surplus 


Per  Mile 

$77,818 

33,275 

111,093 


Per  Mile 
$11,705 
5,376 
6,329 
27 
6,356 
1,946 
4,410 


$824 

1,007 

3,040 

505 


1912 

15.6% 
30.2% 
16.6% 

37.6% 


Miles,  second  track  and  sidings . 


100.0% 

1912 

68.0% 


NOTES 

This  Company  operates  a  line  of  railway  extending  from  Vera  Cruz  to  the 
City  of  Mexico  (263  miles),  with  branches,  Apizaco  to  Puebla  (29  miles) 
Ometusco  to  Pachucha  (29  miles)  to  Zacatlan  (33  miles)  and  to  Huatusco 
(20  miles). 

The  First  Preference  Stock  of  the  Company  was  issued  in  1874  to  holders 
of  8%  bonds.  The  stock  has  been  receiving  the  full  dividend  since  1910, 
prior  to  which  date  the  dividends  paid  were  as  follows:  1909,  7  3/16%; 
1906  to  1908,  8%;  1905,  6  3/16%;  1904,  5x/2%. 

The  Second  Preference  Stock  was  issued  in  1874,  in  lieu  of  overdue  interest 
and  ranks  after  the  First  Preference  Stock,  being  entitled  to  dividends  up  to 
6%  per  annum.  This  rate  was  paid  from  1910  to  1913,  inclusive;  in  1909, 
2%%  was  paid;  in  1908,  7A%;  in  1907,  5%%;  in  1906,  3  13/16%. 

123 


THE     RAILWAYS    OF    SOUTH 

The  Ordinary  Stock  is  entitled  to  the  balance  of  dividends  declared  during 
each  year.  This  stock  received  %%  in  1910;  1  9/16%  in  1911;  2>%%  in  1912; 
2%.%  was  paid  in  the  first  half  of  1913. 

The  Perpetual  6%  was  issued  in  1880  and  is  a  first  charge  on  the  undertaking, 
being  followed  by  the  4J4%  Second  Debentures. 

This  railway  was  originally  incorporated  in  1864  as  the  Imperial  Mexican 
Ry.  and  the  Republic  gave  it  an  annual  subvention  of  $560,000  a  year  for 
twenty-five  years,  and  agreed  not  to  subsidize  any  other  railway  between 
Vera  Cruz  and  the  City  of  Mexico  for  sixty-five  years,  from  November,  1868. 

In  August,  1913,  the  Mexican  Ry.  acquired  the  San  Marcos  &  Huajuapam 
De  Leon  Ry.  (54  miles). 


Mexican  Northern  Ry. 


Avg.  Miles 

Year 

Oper. 

Gross 

Surplus 

1905-6 

81 

$262,961 

$161,096 

1906-7 

81 

248,943 

74,871 

1907-8 

81 

422,074 

197,819 

1908-9 

81 

345,330 

154,272 

Avg.  Miles 

Year             Oper.         Gross  Surplus 

1909-10         81          $288,643  $112,319 

1910-11          81            256,731  152,138 

1911-12          81            235,873  139,142 

1912-13          81          *167,842  *86,892 

*Decrease  due  to  Mexican  Revolution.  (See  below) 

Stock  Outstanding  Bonds  Outstanding 

June  30,  1913                                                                      June  30,  1913 
Common $3,000,000        |        Fixed  Interest $708,000 

Capitalization 

Total  Per  Mile 

Stock $3,000,000  $37,037 

Bonds 708,000  8,741 

Total 3,708,000  45,778 

Income  Account  Year  Ending  June  30,  1913 

Note:     Owing  to  the  Revolution  in  Mexico,  Operations  were  suspended  April  9,  1913. 
Average  miles  operated  81. 


Operating  Revenues 

Operating  Expenses 

Net  Operating  Revenues. 

Other  Income 

Total  Net  Income 

Fixed  Charges 

Surplus 


Total 

Per  Mile 

$167,842 

$2,072 

85,501 

1,056 

82,341 

1,016 

55,173 

682 

137,514 

1,698 

50,622 

625 

86,892 

1,073 

Operating  Expenses 

In  Company's  annual  statements  operating  expenses  are  not  sub-divided. 
Ratio  of  Operating  Expenses  to  Operating  Revenues  51.0  per  cent. 

Miles,  yards  and  sidings 4 

NOTES 

This  railroad  extends  from  Escalon,  in  the  State  of  Chihuahua  (on  the 
National  Rys.  of  Mexico)  to  Rincon  and  San  Mojad  in  the  State  of  Coahuilla. 
The  railway  handles  largely  Products  of  Mines. 

Dividends  have  been  paid  on  the  stock  in  recent  years  as  follows:  1902,  2%; 

124 


AND     CENTRAL    AMERICA 

1903,  1%;  1909,  4%  and  11%  back  dividends  from  1903  to  1908;  1910  to  1012, 
4%  each;  1913,  2%  (May). 

The  $708,000  First  Mortgage  6%  bonds  due  1930  are  secured  by  a  first  lien 
on  the  property. 

On  April  9,  1913,  operations  were  suspended  owing  to  the  Revolution  in 
Mexico. 

Both  the  stock  and  bonds  are  listed  on  the  New  York  Stock  Exchange. 


National  Rys.  of  Mexico. 


(Figures  reauced  to  Gold  at  50  cents  for  the  silver  dollar.) 
Avg.  Miles  Avg.  Miles 

Year  Oper.  Gross  *Surplus  Year  Oper.  Gross  *Surplus 

1908-9       5,227     $24,402,761        $1,844,979        1911-12      6,008     $30,723,895  $1,942,288 

1909-10     5,262       26,281,147         2,464,111        1912-13    t6,090       28,685,141  412,916 

1910-11     6,132       30,967,211  2,352,844 

♦Surplus  here  given  before  deductions  made  account  of  "Sundry  Adjustments  of  Operat- 
ing Expenses,"  this  item  was  $700,000  for  1911-12.      t388  miles  narrow  gauge. 
Stock  Outstanding  Bonds  Outstanding 

June  30,  1913  June  30,  1913 

Common $74,803,466  Fixed  Interest $135,549,919 

Preferred  1st  (4  %) 28,831,000  fBonds  Assumed 57,796,500 

♦Preferred  2d  (5  %) 120,349,267  Notes 36,836,791 

Undeposited   Stock   and   In-  Equipment 1,443,839 

come  Bonds 603,700  Undeposited  Bonds 1,392,347 

*Does   not   include   $4,191,463   in   Treasury   unpledged.     tNational   R.    R.   of    Mexico 
$47,740,000;    Mexican  International  R.  R.  $10,056,500. 

Note:    The  Coupons  due  February,  1914,  on  the  414%  Prior  Lien  bonds  of  the  N.  Rys. 
of  Mex.  and  the  N.  R.  R.  of  Mex.  received  par  in  Notes  in  lieu  of  cash. 

Capitalization 

Total  Per  Mile 

Stock $224,587,433  $36,878 

Bonds 233,019,396  38,263 

Total 457,606,829  75,141 

Fixed  Charges  below  include  $39,124  for  Rentals  and  $334,391  for  Hire  of  Equipment. 
Income  Account  Year  Ending   June  30,   1913 
Average  miles  operated,  6,090. 

Total  Per  Mile 

Gross  Receipts $28,685,141  $4,710 

Operating  Expenses 18,121.973  2,976 

Net  Receipts 10,563,168  1,734 

Other  Income 722,582  119 

Total  Net  Income 11,285,750  1,853 

Fixed  Charges  (including  for  Taxes,  $211,361) 10,872,834  1,785 

♦Surplus 412,916  68 

Operating  Expenses 

Total  Per  Mile 

Maintenance  of  Way $4,038,319  $663 

Maintenance  of  Equipment 5,058,229  831 

Conducting  Transportation 8,051,490  1,322 

General  Expenses 973,935  160 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  63 . 2  per  cent. 

♦This  Surplus  before  deducting  $51,135  for  Sundry  Adjustments  of  value  of  materials 
purchased  and  of  bonds  owned. 

Appropriation  of  Gross  Income 

1912-13     1911-12    1910-11     1909-10  1908-9 

For  Maintenance  Expenses 30.9%     33.3%     31.7%     27.3%  25.4% 

For    Traffic,    Transportation    and    General 

Expenses 30.7%     27.6%     30.8%     31.4%  32.7% 

For  Fixed  Charges 37.0%     33.0%     30.0%     32.1%  34.5% 

For  Surplus 1.4%       6.1%       7.5%       9.2%  7.4% 

100.0%  100.0%   100.0%   100.0%   100.0% 
1912-13        1911-12        1910-11        1909-10 

Ton  miles  per  mile  of  road 204,781        239,452        247,034        240,358 

Passenger  miles  per  mile  of  road 76,277  78,344  70,872  73,251 

Miles,  yards  and  sidings 901  880  836  635 

125 


THE     RAILWAYS    OF     SOUTH 

NOTES. 

The  first  preferred  stock  is  entitled  to  dividends  of  4%  per  annum  in 
priority  to  the  second  preferred,  which  class  of  stock  is  to  receive  5%  before 
the  common  stock  receives  any  dividend.  Dividends  were  paid  on  the  first 
preferred  stock  as  follows:  lr^  each  February,  1909;  August,  1909,  and  Feb- 
ruary, 1910,  2%;  in  August,  1910.  2%,  and  semi-annually  thereafter,  includ- 
ing February,  1913.  In  August,  1913,  the  dividend  was  passed.  The  revo- 
lution in  Mexico  caused  a  large  decrease  in  the  earnings  for  1912-13. 

Owing  to  the  decrease  in  earnings  due  to  the  revolution  the  January,  1914. 
coupons  on  bonds  were  paid  with  $2,460,341  6%  three-year  Notes  at  par. 
The  Notes  were  secured  by  £595,580  Mexican  Government  6%  bonds. 

This  company  was  organized  in  March,  1908,  to  take  over  the  properties 
of  the  National  R.  R.  of  Mexico  and  the  Mexican  Central  Ry.,  and  in  May, 
1908,  those  two  companies  were  amalgamated.  The  National  Rys.  of  Mexico 
has  since  acquired  and  merged  into  its  svstem  the  Mexican  International 
R.  R. 

The  Mexican  Government  holds  a  controlling  interest  in  the  new  company. 
The  authorized  capital  stock  of  the  new  company  is  as  follows:  575,000,000 
(U.  S.  Currency)  common  stock,  $30,000,000  non-cumulative  4'  ',  first  pre- 
ferred stock  and  $125,000,000  non-cumulative  5%  second  preferred  stock.  There 
has  been  further  authorized  $225,000,000  Prior  Lien  50-year  4j^%  bonds 
and  $160,000,000  General  Mortgage  70-year  4%  bonds,  the  latter  guaranteed 
principal  and  interest  by  the  Mexican  Government.  The  4j/£%  bonds  are 
to  be  redeemed  by  a  sinking  fund  beginning  in  1917,  and  are  subject  to  call 
before  maturity  at  105  and  interest  in  amounts  of  not  less  than  $10,000,000. 
The  4%  bonds  are  to  be  retired  by  a  sinking  fund  beginning  in  1937,  and  after 
April  1,  1927,  are  subject  to  call  at  par  and  interest,  in  lots  of  not  less  than 
$10,000,000.  The  right  is  reserved  to  issue  additional  bonds  of  this  series  to 
take  up  underlying  bonds. 

BASIS    OF    EXCHANGE. 


Each 


Deposited  Bonds  and  Stks.  Cash 
Mexican  Cen.  Ry.,  Ltd.: 

Priority  5%  Bonds 

First  Mtg.  7%  Bonds 

Consolidated  Mtg.  4%...  . 
First  Cons.  Inc.  &  Scrip.  . 
Registered  Inc.  &  Scrip.  . 
Second  Consol.  Incomes.  . 

Stock 

National  R.  R.  Co.  of  Mex. : 

Preferred  Stock $100 

Second   Preferred   Stock.  . 

Common  Stock  (old) 

Deferred  Stock 


$1,000     par 
received    in 


Prior 
Lien 

Bonds 

$700 

1,000 

600 


value     of     deposited    securities 
accordance    with    plan    of 
April  6,  1908. 


G'td. 
Gen. 
Mtge. 

4% 

$475 
325 


1st 

Pfd. 

Shares 


$1,000 


2nd 

Pfd.  Com. 

Shares      Shares 


$75 
1,100 
1,100 
1,000 
1,000 


1,100 
733^    $333Ji 
1,000 


126 


AND     CENTRAL     AMERICA 

NEW    BONDS    AUTHORIZED     (u.    S.    CURRENCY.) 

The  new  bonds  were  issuable  for  the  following  purposes: 

Guar. 
Prior  Lien    Gen'l.  Mtge. 
W2%  Bonds     4%  Bonds 

In  exchange  for  $6,597,000  Priority  5s,  $265,062 
First  Mtge.  7s  and  $109,020,000  Corisol.  Mtge. 
4s  of  the  Mexican  Cent.  Ry.  under  basis  of  ex- 
change as  above $70,294,962     $38,565,075 

Sold  for  cash 10,000,000         6,750,000 

For  betterments,  improvements  and  equipment 
presently  required;  to  take  up  Nat.  R.  R.  of 
Mex.  5%  due  1909,  and  for  other  corporate 
purposes 20,205,038       12,985,925 

Mexican  Govt.,  on   account  of  its   guaranty   and 

other  considerations 6,000,000         2,450,000 

For  retiring  outstanding  National  R.  R.  of  Mex. 

Prior  Lien  \XA%  Bonds,  due  1926 23,000,000  

For  retiring  outstanding  Nat.  R.  R.  of  Mex.,  First 

Consolidated  Mortgage  \%  Bonds 24,749,000 

For  issue  under  suitable  restrictions  for  the  con- 
struction or  acquisition  of  the  Short  Line  from 
Tampico  to  the  City  of  Mexico  or  for  the  con- 
struction or  acquisition  of  additional  lines  of 
railroad,  terminals,  and  for  betterments,  improve- 
ments and  equipment 95,500,000       74,500,000 

Total  (U.  S.  Currency) $225,000,000  $160,000,000 

The  right  is  reserved  to  issue  additional  4^%  bonds  and  4%  bonds,  to  take 
up,  at  or  before  maturity,  an  equal  amount  of  Prior  lien  4j^s  and  Consolidated 
Mortgage  4s  of  the  Mexican  International  R.  R. 

SECURITIES     OUTSTANDING GOVERNMENT     OWNERSHIP. 

On  June  30,  1913,  securities  of  the  National  Rys.  of  Mexico  were  outstand- 
ing in  the  hands  of  the  public  as  follows  (all  U.  S.  Currency):  common  stock, 
$74,803,467;  first  preferred  stock,  $28,831,000;  second  preferred  stock, 
$120,349,267;  Prior  Lien  bonds,  $84,802,315;  General  Mortgage  bonds, 
$50,747,600;  Mexican  International  R.  R.  bonds,  $10,056,500;  $23,000,000 
Prior  Lien  and  $24,740,000  First  Consolidated  bonds  of  the  National  R.  R. 
of  Mexico. 

In  addition  to  the  securities  outstanding  as  given  above,  there  were  held 
in  the  treasury  of  the  company,  or  deposited  as  collateral  or  guarantee,  or  for 
exchange,  on  June  30,  1913,  $43,200  common  stock,  $1,900  first  preferred 
stock,  $4,650,733  second  preferred  stock,  $26,871,841  Prior  Lien  bonds  and 
$15,525,333  General  Mortgage  bonds;  also  $9,000  National  R.  R.  of  Mexico 
4%  bonds  (assumed),  $3,000,000  Mexican  International  R.  R.  4%  bonds 
(assumed),  and  $4,499,000  (entire  issue)  of  the  latter  company's  Income 
bonds. 

The  Government  of  Mexico  owns  $1 15,056,367,  a  majority  of  the  stock.  Of 
this,  $10,000,000  is  first  preferred,  $30,278,300  second  preferred  and  $74,778,- 
067  is  common  stock.     Of  the  bonds  held  in  the  company's  treasury  on  June 

127 


THE     RAILWAYS    OF    SOUTH 

30,   1913,  $25,494,847  Prior  Liens  and  $15,573,800  Generals  were  deposited 
as  collateral  or  guarantee. 

The  National  Rys  of  Mexico  assumed  the  following:  $15,740,000  5% 
Notes  due  1910  (since  retired),  of  the  Mexican  Central  Ry.;  $10,000,000 
Notes  due  1909  (paid  off  at  maturity),  and  $50,289,000  bonds  (Prior  Lien 
43^s  and  First  Consolidated  4s)  of  the  National  R.  R.  of  Mexico,  of  which 
$47,740,000  were  outstanding  June  30,  1913;  also  bonds  of  Mexican  Inter- 
national R.  R.  ($10,056,500  outstanding  in  hands  of  the  public  June  30, 
1913). 

The  company  issued  under  date  of  June  1,  1911,  $10,000,000  two-year  4}/£% 
Notes,  due  June  1,  1913.  These  Notes  were  issued  to  meet  maturing  obliga- 
tions (largely  of  Mexican  Central  Ry.),  and  were  secured  by  Prior  Lien 
4j/£%  bonds  and  General  Mortgage  4%  bonds.  $13,000,000  6%  Notes 
matured  November  15,  1913.  The  payment  of  these  Notes  was  for  the  most 
part  made  prior  to  June  30,  1913,  with  proceeds  derived  from  the  sale  of  new 
Notes  due  in  1915.  The  company  had  outstanding  on  June  30,  1913,  Notes 
Payable  to  the  amount  of  $31,836,796  including  about  $27,000,000  6%  two 
year  Notes,  due  June  2,  1915.  These  Notes  are  authorized  to  the  amount 
of  £6,000,000  and  will  be  secured  by  $24,800,000  Prior  Lien  and  $17,000,000 
General  Lien  bonds. 

A  statement  follows  of  securities  deposited  up  to  June  30,  1913,  in  accord- 
ance with  the  plan  of  April  6,  1908. 

SECURITIES    DEPOSITED. 

(U.  S.  Currency) 
Securities  of  the  Mexican  Central  Rv.,  Ltd. 

Total                               Per  Out- 
Issue           Deposited  Cent,  standing 

5%  Priority  Bonds $6,597,000     $5,223,000  79.2  $1,374,000 

First  Mortgage  Bonds 264,062          262,715   99.5  1,347 

Consolidated  Mtge.  4%. ..  .    109,020,000  109,003,000  99.9  17,000 

First  Income  Bonds 32,706,000     32,518,400  99.4  187,600 

Registered  Income  Bonds  .            325,200          317,000  97.5  8,200 

Second  Income  Bonds 11,284,000     11,263,000  99.8  21,000 

Shares 59,127,100     59,066,100  99.9  61,000 


p 

er 

Cent 

20. 

8 

00 

5 

00, 

1 

00. 

6 

02. 

5 

00. 

2 

00. 

1 

Total $219,323,862$217,653,215  99.2  $1,670,147  00.8 

Securities  of  the  National  R.  R.  of  Mexico 

Total                                 Per  Out-  Per 

Issue           Deposited   Cent,  standing  Cent. 

Preferred  Stock $32,000,000  $31,998,100     99.9  $1,900  00.1 

Second  Preferred  Stock....      22,043,600     22,001,600     99.8  40,000  00.2 

Common  Stock 284,600          156,500     55.0  128,100  45.0 

Deferred  Stock 11,021,800     11,021,800   100.0  00.0 


Total $65,350,000  $65,180,000     99.7    $170,000     00.3 

Total  Number  of  Securities  of  Both  Companies 

Per              Out-  Per 

Total  Issue         Deposited         Cent.        standing  Cent. 

Bonds  and  Shares    $284,673,862     $282,833,215        99.3       $1,840,148  00.7 

Note. — All  the  above  amounts  are  in  United  States  currency. 

128 


AND     CENTRAL     AMERICA 

SECURITIES    OWNED. 

The  National  Rys.  of  Mexico  owned  on  June  30,  1913,  stocks  and  bonds  of 
other  companies  carried  at  a  book  value  of  $10,865,235.  A  majority  of  these 
securities  were  pledged.  There  was  also  held  on  June  30,  1913,  a  considerable 
amount  of  bonds  and  stocks  of  companies  whose  lines  formed  a  part  of  the 
System,  including  $20,602,300  stocks  (of  a  total  of  $20,708,200)  of  the  Mexican 
International  R.  R.  Beginning  July  1,  1910,  this  railroad  has  been  operated 
as  a  part  of  the  National  Rys.  of  Mexico,  thus  adding  to  the  mileage  of  the 
System,  905  miles  of  standard  gauge  railroad,  with  180  miles  of  sidings.  In 
addition  to  its  $20,708,200  stock  and  $4,499,000  Income  bonds,  the  Mexican 
International  R.  R.  had  outstanding  June  30,  1913,  $5,850,000  Prior  Lien 
4M%  bonds  due  1947  and  $4,206,500  First  Consolidated  Mortgage  4% 
bonds  due  1977,  most  of  the  latter  guaranteed  by  the  National  R.  R.  of  Mexico. 

In  1910-11,  all  of  the  stock  of  the  Vera  Cruz  to  Isthmus  R.  R.  (293  miles 
operated)  was  acquired,  and  on  November  10,  1913,  this  railroad  (operating 
about  300  miles)  was  merged  into  the  System.  This  line,  together  with  the 
Tehauntepec  Ry.,  forms  a  through  route  from  the  Gulf  of  Mexico  to  the  Pacific 
Ocean.  This  company  has  outstanding  $7,000,000  Vera  Cruz  &  Pacific  Ry. 
First  Mortgage  4j-^%  bonds,  and  guarantees  jointly  with  three  other  railways 
£997,000  Vera  Cruz  Terminal  Debenture  bonds.  Likewise  practically  all 
of  the  $10,000,000  capital  stock  and  a  large  amount  of  bonds  of  the  Pan- 
American  R.  R.  (285  miles)  were  acquired.  The  deficit  from  the  operations 
of  this  company  for  1911-12  was  $702,220.  The  National  Rys.  of  Mexico 
guarantees  the  $6,054,000  bonds  of  the  Pan-American  R.  R.  ($2,567,000 
owned  by  National  Rys.  of  Mexico).  With  the  control  of  the  lines  of  the  Vera 
Cruz  to  Isthmus  R.  R.,  the  National  Rys.  of  Mexico  has  a  transportation 
line  extending  from  the  frontier  with  the  United  States  in  the  North  to  the 
Southern  boundary  with  Guatemala,  with  the  exception  of  some  few  miles 
covered  by  the  Tehauntepec  National  Ry. 

The  National  Rys.  of  Mexico  controls  the  Interoceanic  Ry.  of  Mexico, 
Ltd.,  a  company  operating  1,056  miles  of  narrow  gauge  road  (including 
Mexican  Southern  Ry.  Ltd.,  302  miles).  The  National  Rys.  owns  £1,310,500 
of  the  £1,700,000  ordinary  stock  and  £142,800  and  £102,000  of  the  £1,400,000 
and  £1,000,000  first  and  second  preferred  stock  of  this  company.  Dividends 
of  5%  and  4%  respectively  were  paid  on  the  first  preferred  stock  in  1911-12 
and  1912-13.  2%  was  paid  on  the  second  preferred  stock  in  1911—12.  No 
dividend  was  paid  on  this  class  of  stock  in  1912-13,  also  £1,038,450  (£1,300,000 
outstanding)  4}^%  Second  Debenture  Stock.  The  Interoceanic  Rys.  of 
Mexico  also  has  outstanding  approximately  £1,150,000  and  £470,000  Deben- 
ture Stock  and  "B"  Debenture  Stock.  In  1912-13,  earnings  were:  gross, 
$4,560,695;    net,  $1,627,681;    surplus  about  $448,670. 

GENERAL 

As  of  June  30,  1913,  main  track  and  branches  (including  narrow  gauge) 
of  the  National  Rys.  of  Mexico  contained: 

758  miles  of  85-pound  rail,  25  miles  of  65-pound  rail, 

12  miles  of  83-pound  rail,  125  miles  of  61J^-pound  rail, 

1728  miles  of  75-pound  rail,  271  miles  of  60-pound  rail, 

951  miles  of  70-pound  rail,  1477  miles  of  56-pound  rail, 
132  miles  of  66-pound  rail,  713  miles  of  lighter  weights. 

Of  the  total  mileage  of  the  System  in  operation  June  30,  1913,  5,748  miles 
were  standard  gauge  and  387  miles  were  narrow  gauge. 

129 


THE     RAILWAYS    OF     SOUTH 

Among  th~  lines  directly  operated  we.e  the  following:  Mexico  to  Rio 
Grande  River  Bridge  (802  miles),  Mexico  to  Ciudad  Juarez  (1224  miles), 
Tampico  to  Monterey  and  Gomez  Palacio  (548  miles),  Chicalate  to  Tampico 
(406  miles),  Irapuato  to  Manzanillo  (382  miles),  Torreon  to  Saltillo  (191  miles), 
Matamoras  Branch  (205  miles),  Matamcras  to  Durango  (171  miles),  Mexico 
to  Acambara  (172  miles),  etc. 

47.3%  of  the  total  freight  tonnage  handled  in  1912-13  consisted  of  Mineral 
Products,  as  compared  with  49.8%  in  1911-12.  Other  commodities  handled 
in  1912-13  were:  Forest  Products,  11.8%;  Agricultural  Products,  24.7%; 
Animal  Products   (Live  Stock,  etc.),  4.5%.    General  Merchandise,   11.7%; 

The  balance  sheet  as  of  June  30,  1913,  showed  Working  Assets  (including 
$6,089,579  material  and  supplies  and  $8,340,432  cash,  of  which  $7,646,969 
to  meet  maturing  bonds  and  coupons  due,  etc.),  $21,001,763  and  Working 
and  Accrued  Liabilities  (including  $31,836,769  Notes  Payable),  $44,493,798. 

See  Interoceanic  Ry.  of  Mexico. 


Southern  Pacific  R.  R.  of  Mexico. 

Avg.  Miles  Avg.  Miles 

Year       Oper.  Gross  Deficit  Year         Oper.  Gross  Deficit 

1910-11  928       $1,333,271  $2,248,046       |        1912-13         1242       $2,072,384  $2,517,950 

1911-12  949         1,613,291     2,480,433        | 

Note:     The  Revolution  in  Mexico  has  caused  a  very  large  loss  in  Gross  Earnings  and 

abnormal  Operating  Expenses,  thus  explaining  in  part  the  large  deficits  shown  above. 

Stock  Outstanding  Bonds  Outstanding 

Common $75,000,000  Advances  by  the  So.  Pac.  Co.$38,255,739 

Capitalization 

Total  Per  Mile 

Stock $75,000,000  $60,386 

Bonds 38,255,739  30,802 

Total 113,255,739  91,188 

Fixed  Charges  below  include  $2,731,076  for  Interest  on  Open  Account  with  the  Southern 
Pacific  Co.  and  $67,329  for  Hire  of  Equipment  and  Other  Charges. 

Income  Account  Year  Ending  June  31,  1913 
(Estimated) 

Average  miles  operated,  1,242. 

Gross  Receipts 

Operating  Expenses 

Net  Receipts 

Other  Income 

Total  Net  Income 

Fixed  Charges  (including  for  Taxes,  $7,560) 

Deficit 


Total 

Per  Mile 

$2,072,384 

$1,669 

1,837,535 

1,480 

234,849 

189 

53,163 

43 

288,012 

23 

2,805,962 

2,252 

2,517,950 

2,029 

Total 

Per  Mile 

* 

* 

* 

* 

Operating  Expenses 

Maintenance  of  Way 

Maintenance  of  Equipment 

Traffic  and  Transportation  Expenses 

General  Expenses *  * 

Ratio  of  Operating  Expenses  to  Gross  Receipts  88.7  per  cent. 

*Not  subdivided  in  the  annual  report  of  the  company. 

Appropriation  or  Gross  Income 

1912-13 

For  Maintenance,  Traffic,  Transportation  and  General  Expenses 97.5% 

For  Fixed  Charges 131.9% 

For  Surplus Deficit 

130 


AND     CENTRAL     AMERICA 

NOTES 

The  Southern  Pacific  R.  R.  of  Mexico,  incorporated  June  24,  1909,  as  the 
successor  to  the  Cananea,  Yaqui  River  &  Pacific  R.  R.,  and  owned  by  the 
Southern  Pacific  Company,  which  owns  the  entire  $75,000,000  stock,  has  com- 
pleted or  is  building  a  system  of  railways  in  the  Republic  of  Mexico,  con- 
sisting of  upwards  of  1,500  miles  of  main  track. 

The  railway  extends  from  Nogales  on  the  border  between  Arizona,  U.  S.  A., 
and  Sonora,  Mexico,  through  the  latter  state,  via  Magdalena,  Hermosillo 
and  other  places  to  the  Port  of  Guaymas,  located  on  the  Gulf  of  California, 
thence  keeping  near  the  coast  it  continues  to  Corral,  where  it  meets  an  exten- 
sion running  northerly  to  Tonichi  and  projected  to  Nacorazi  and  to  Douglas, 
Ariz.  From  Corral  the  railway  runs  southeasterly  to  Navojoa  where  there  is 
a  branch  to  Alamos,  and  into  the  State  of  Sinaloa,  passing  Culiacan  (the  capi- 
tal), Quila  (junction  of  a  branch  to  the  Port  of  Eldorado),  Mazatlan,  Acaponeta 
and  Tepic.  From  the  latter  city  the  line  is  to  be  continued  on  to  near  Guada- 
lajara to  meet  the  National  Rys.  of  Mexico's  line  to  Mexico  City.  Owing 
to  the  existing  Revolution  in  Mexico,  the  completion  of  the  unfinished  mileage 
has  been  delayed.  The  unfilled  gap  amounts  to  99  miles;  (Tepic  to  La  Qua- 
madi;  from  the  latter  point  southward  44  miles  have  been  completed). 

The  earnings  as  presented  in  the  table  just  preceding  do  not  furnish  any 
information  as  to  the  earning  capacity  of  the  road,  as  will  be  explained  in 
the  next  paragraph,  but  are  given  for  the  sake  of  record  only. 

The  Southern  Pacific  R.  R.  of  Mexico,  during  the  year,  continued  to  suffer 
from  revolutionary  disturbances.  Not  only  were  structures  and  equipment 
destroyed,  but  business  was  practically  suspended  and  development  of 
prospective  traffic  retarded.  It  is  estimated  that  the  loss  on  account  of 
interruption  to  traffic,  from  the  beginning  of  the  Madero  Revolution,  in  1910, 
to  June  30,  1913,  amounted  to  approximately  6,000,000  pesos.  During  this 
period  the  cost  of  maintaining  the  property  has  amounted  to  about  1,020,000 
pesos  in  excess  of  the  revenue  collected.  Claims  for  loss  and  damage  caused 
by  the  revolutionary  disturbances,  amounting  to  287,800  pesos,  have  recently 
been  approved  by  the  Mexican  Government,  but  have  not  been  paid.  Claims 
amounting  to  862,200  pesos,  covering  additional  losses,  will  be  presented  to 
the  Mexican  Government  in  due  course.  On  account  of  the  fluctuation  in 
the  rate  of  exchange,  due  to  the  revolutionary  disturbances  in  Mexico,  it  is  not 
practicable  to  state  these  amounts  in  U.  S.  Gold. 

On  June  30,  1912,  the  Sonora  Ry.  (263  miles — Sonora  to  Guaymas),  pre- 
viously leased  from  the  Atchison,  Topeka  &  Santa  Fe  Ry.,  was  purchased 
by  the  Southern  Pacific  R.  R.  of  Mexico.  This  mileage  is  included  in  that  of 
the  lines  described  above. 

As  stated  on  the  Table  Page  the  Southern  Pacific  Company  had  advanced 
to  this  railway  to  June  30,  1913,  $38,255,739,  as  against  $39,026,799,  June 
30,  1912,  $38,138,721,  June  30,  1911,  and  $35,965,602,  June  30,  1910.  The 
interest  on  these  advances,  although  included  in  the  Fixed  Charges  of  the 
Southern  Pacific  R.  R.  of  Mexico,  has  not  been  taken  into  the  Income  Account 
of  or  otherwise  credited  to  the  Southern  Pacific  Company. 


131 


THE     RAILWAYS     OF     SOUTH 


GUATEMALA,    SALVADOR    AND    BRITISH 

HONDURAS. 


Guatemala. 

During  1912  there  was  effected  a  consolidation  of  the  Guatemala  Central 
R.  R.  (139  miles  from  the  capital  to  the  Pacific),  the  Guatemala  R.  R.  (195 
miles  from  the  capital  to  Puerto  Barrios  on  the  Caribbean  Sea)  and  the  railroads 
belonging  to  the  same  interests  in  Salvador  under  the  name  of  International 
Rys.  of  Central  America  (see  that  company). 

The  joining-  of  this  company's  lines  in  Guatemala  and  Salvador,  which 
will  soon  be  accomplished,  will  give  the  latter  Republic  an  Atlantic  outlet. 
The  company  has  continued  the  construction,  along  the  western  coast  of 
Guatemala,  of  the  Pan-American  branch,  which  ultimately  will  connect  the 
capital  with  the  town  of  Ayutla,  on  the  Mexican  frontier.  As  the  rail- 
roads of  Mexico  have  been  extended  to  Mariscal,  across  the  river  from 
Ayutla,  and  as  an  International  bridge  has  been  partially  completed, 
through  railway  transportation  between  the  United  States,  Guatemala 
and  Salvador,  and  later  with  the  Republics  of  Honduras,  Nicaragua,  Costa 
Rica,   Panama,   etc.,  will   likely   be   realized. 

The  Verapaz  Ry.  (a  German  owned  company),  whose  lines  are  about  28 
miles  long  and  form  the  outlet  for  the  coffee  of  the  Coban  region,  owns  and 
operates  also  the  steamboats  and  barges  for  transportation  by  water  from  the 
railroad  terminus  at  Panzos,  on  the  Polichic  River,  by  way  of  this  river  and 
Lake  Izabal  and  the  Dulce  River  to  the  Atlantic  port,  Livingston.  The 
railway  runs  from  Pancajche  to  Panzos. 

A  railroad  is  being  built  by  the  Government  of  Guatemala  between  Quezal- 
tenango,  second  city  in  size  in  the  Republic,  and  San  Felipe,  which  is  the 
terminus  of  a  branch  of  the  International  Rys.  of  Central  America.  The 
new  line  is  to  be  about  40  miles  in  length  when  finally  completed,  and  a  large 
portion  of  it  has  been  graded. 

The  total  railway  mileage  of  Guatemala  at  the  beginning  of  1913  was 
about  450  miles.  The  Republic's  area,  48,290  square  miles,  is  slightly  larger 
than  that  of  New  York  State.  The  population  is  given  as  2,119,165  (about 
42  per  square  mile). 


Salvador. 


ilways  at  present  in  operation  in  the  Republic  of  Salvador  are 
:r  "Salvador  Ry."  and  "International  Rys.  of  Central  America." 


The  two  rail 
described  under 

The  former  line  runs  from  San  Salvador,  the  capital,  to  the  port  of  Acajutla, 
with  a  branch  to  Santa  Ana,  etc.,  (total  mileage  100),  while  the  latter  rail- 
way is  building  from  La  Union  to  the  frontier  with  Guatemala,  where  it 
will  meet  its  lines  operating  in  the  latter  Republic.     An  English  Company  has 

132 


AND     CENTRAL     AMERICA 

recently  made  the  Government  a  proposition  to  build  a  railway  from  San 
Salvador  to  the  Port  of  La  Libertad.  The  total  length  of  railways  in  operation 
December  31,  1912,  was  estimated  at  160  miles. 

This  little  country  has  an  area  of  7,225  square  miles  (a  little  smaller  than 
the  State  of  New  Jersey)  and  a  population  of  about  1,700,000.  Its  exports, 
mainly  coffee,  were  valued  at,  in  1912,  $8,936,795,  and  its  imports  at  $6,774,859. 


British  Honduras. 

There  is  very  little  to  say  about  the  railways  of  British  Honduras.  Brit- 
ain's Central  American  colony  has  within  its  boundary,  a  narrow  gauge  line  25 
miles  in  length,  extending  from  Belize,  the  capital  and  principal  port  to  Stann 
Creek.  This  little  country — area  8,598  square  miles;  population  about  45,000 — 
has  a  large  coast  line,  which  is  served  by  mail  steamers  running  between 
Belize,  Corozal,  Caledonia,  San  Estevan,  Orange  Walk,  etc.,  while  motor 
boat  service  is  provided  up  the  Belize  River  as  far  as  Cayo. 

The  exports  of  British  Honduras  for  1910  totalled  £482,383  and  the  im- 
ports £580,086.  The  principal  exports  were  10,673,881  feet  of  mahogany, 
936,708  feet  of  cedar,  5,545,679  cocoanuts  and  2,238,500  plantains. 


133 


THE     RAILWAYS     OF     SOUTH 
International  Rys.  of   Central  America. 

Avg.  Miles 
Year  Oper.  Gross  Surplus 

1912  *407  $2,352,385  $820,891 

♦Includes  Guatemala  Ry.  (195  miles');  Guatemala  Central  R.  R.  (139  miles);  Occidental 
R.  R.  (51  miles);  Ocos  R.  R.  (22  miles).  Does  not  include  Pan-American  Extension  (14 
miles)  and  Salvador  Division  (40  miles). 

Stock  Outstanding  Bonds  Outstanding 

December  31,  1912  December  31,  1912 

Common $30,000,000  |        Fixed  Interest $10,850,000 

Preferred  (5%) 10,000,000  I 

Capitalization 

Total  Per    Mile 

Stock $40,000,000  $98,280 

Bonds 10,850,000  26,659 

Total 50,850,000  124,939 

Income  Account  Year  Ending  December  31,  1912 

Total  miles  operated,  407. 

Gross  Receipts 

Operating  Expenses 

Net  Receipts 

Outside  Operations 

Total  Net  Income 

Fixed  Charges  (including  for  Taxes,  $4,125) 

tSurplus 


Operating  Expenses 

Maintenance  of  Way 

Maintenance  of  Equipment 

Conducting  Transportation 

General  Expenses 


Total 

Per  Mile 

$2,352,385 

$5,780 

1,104,369 

2,713 

1,248,016 

3,067 

42,972 

105 

1,290,988 

3,172 

470,097 

1,155 

820,891 

2,017 

*$308,420 

$758 

*149,434 

367 

*500,517 

1,230 

♦145,998 

358 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  47.0  per  cent. 

tThis  Surplus  before  deducting  $30,000  for  Additions  and  Betterments. 

♦Approximately  correct.  In  the  annual  report  of  the  Company  the  Operating  Expenses 
of  the  Ocos  R.  R.  ($48,995)  are  not  sub-divided.  In  this  book  they  are  divided  propor- 
tionately to  the  Operating  Expenses  of  the  other  Lines  comprising  the  System. 

Appropriation  of  Gross  Income 

1912 

For  Maintenance  Expenses 19.1% 

For  Conducting  Transportation  and  General  Expenses 27.0% 

For  Fixed  Charges 19.6% 

For  Surplus 34.3% 

100.0% 

1912 
Miles,  yards  and  sidings *45 

♦Includes  sidings  of  Pan-American  Extension  and  Salvador  Division  (mileage  not  in- 
cluded above). 

NOTES 

This  company  was  incorporated  in  April,  1912,  and  is  a  consolidation  of 
the  Guatemala  Ry.  (195  miles),  the  Guatemala  Central  Ry.  (139  miles), 
the  Occidental  R.  R.  (51  miles)  and  the  Ocos  R.  R.  (22  miles).  The  company's 
lines  as  they  at  present  exist  extend  from  Puerto  Barrios  on  the  Caribbean 
Sea  to  Guatemala  City  (capital  of  Guatemala),  194.5  miles,  thence  to  San  Jose 
on  the  Pacific  Ocean  (74  miles).  The  company  is  building  a  line  from  Maris- 
cal,  on  the  Mexican  frontier,  to  Las  Cruces,  where  a  connection  will  be  afforded 
with  a  branch  now  in  operation  between  the  latter' point  and  Santa  Maria  on 
the  main  line.      From  Santa  Maria  the  line  will  be  extended  southeasterly  to 

134 


AND     CENTRAL     AMERICA 

Santa  Ana  in  Salvador.  When  this  and  various  other  lines  in  Central 
America,  which  are  being  constructed  by  interests  in  control  of  this  company, 
are  completed,  a  direct  through  route  will  be  afforded  between  Vera  Cruz 
in  Mexico  and  Panama  and  Colon,  extending  along  the  Western  portion  of 
Central  America  through  the  five  Republics  of  Guatemala,  Salvador,  Hon- 
duras, Nicaragua  and  Costa  Rica;  also  Panama.  A  number  of  branch  lines 
will  be  operated  including  two  lines  to  the  Atlantic  Coast  (in  Guatemala  and 
Costa  Rica). 

The  International  Rys.  of  Central  America  has  assumed  the  obligations 
of  the  merged  companies  and  has  authorized  $30,000,000  common  stock, 
$10,000,000  5%  preferred  stock  and  £4,500,000  5%  bonds,  due  1972  (£1,000,- 
000  issued  in  1912).  In  August,  1912,  an  initial  quarterly  dividend  of  \\i% 
was  paid  on  the  ($10,000,000)  preferred  stock.  The  5%  rate  has  since  been 
maintained.  The  preferred  stock  is  entitled  to  share  equally  in  all  dividends 
paid  in  any  year  after  5%  has  been  paid  on  both  issues  of  stock. 

The  interests  controlling  the  company  are  identified  with  the  United  Fruit 
Co. 

In  addition  to  £1,000,000  5%  bonds  sold  in  1912,  the  company  has  issued 
£3,500,000  Central  Division  Purchase  Money  bonds.  These  bonds  are  secured 
by  a  mortgage  on  the  Guatemala  Central  R.  R.,  subject  to  the  latter's  $2,500,- 
000  6%  bonds  due  1916,  and  bear  interest,  2%  in  1912;  3%  in  1913;  4%  in 
1914  and  5%  thereafter.  The  authorized  amount  of  5%  bonds  due  1962 
(£4,500,000)  may  be  increased  to  £6,000,000  under  certain  conditions. 

A  contract  has  been  entered  into  with  the  United  Fruit  Co.,  whereby  the 
railway  will  handle  all  the  products  of  the  Fruit  Co.,  raised  in  the  territory 
served  by  the  railway.  Bananas  and  coffee  are  the  principal  commodities 
handled. 

The  balance  sheet  as  of  December  31,  1912,  shows  Working  Assets  $2,657.- 
521  and  Working  Liabilities  $715,391.  There  was  a  credit  balance  to  Profit 
and  Loss  to  the  amount  of  $150,508. 

The  stock  and  bonds  of  this  company  are  listed  on  the  London  Stock 
Exchange,  also  on  the  New  Orleans  Stock  Exchange. 

The  company  receives  subsidies  from  the  governments  of  Guatemala  and 
Salvador  varying  from  $3,200  to  $7,320  per  kilometer.  The  Government  of 
Guatemala  may  purchase  the  lines  in  that  Republic  after  2,002  at  a  price  to 
be  decided  on  by  arbitration.  In  Salvador,  the  Government  of  that  Republic 
may  purchase  the  lines  located  there  after  June,  1978,  at  an  arbitrated  price; 
or  after  2,006  are  to  receive  these  lines,  without  indemnity. 


135 


THE     RAILWAYS     OF     SOUTH 
Salvador  Ry. 

Avg.  Miles  Avg.  Miles 

Year  Oper.  Gross  Receipts  Year  Oper.  Gross  Receipts 

1911-12  100       t$644,400      +  £128,880        I        1912-13       *100       f$610,875      +  £122,175 

♦Mileage  of  rail  lines  only;    does  not  include  mileage  of  steamship  routes.   (See  Notes.) 
tDoes  not  include  Subsidy  from  Government  amounting  to  $120,000  (£24,000)  annually 
and   Net   Receipts  from   Steamship  Service  amounting  to  $73,610   (£14,722)   in   1912-13 
and  $56,035  (£11,207)  in  1911-12. 

Stock  Outstanding  Bonds  Outstanding 

June  30,  1913  June  30,  1913 

Ordinary $1,250,000  I        Fixed  Interest $4,502,000 

Preference  (6%) 1,250,000  | 

Capitalization 

Total Per  Mile 

Stock £250,000          $2,500,000  $25,000 

Bonds 900,400            4,502,000  45,020 

Total 1,150,400            7,002,000  70,020 

Fixed  Charges  below  include  $71,985   (£14,397)  paid  account  of  Debenture  Redemption 
Fund,  and  $7,500  (£1,500)  cost  of  Terminal  Bond  Issue — proportion  written  off. 

Income  Account  Year  Ending  June  30,  1913 

Average  miles  operated,  100. 

Total Per  Mile 

Gross  Receipts £122,175  $610,875  $6,109 

Operating  Expenses 69,408  347,040  3,471 

Net  Receipts 52,767  263,835  2,638 

Other  Income 39,283  196,415  1,964 

Total  Net  Income 92,050  460,250  4,602 

Fixed  Charges 63,387  316,935  3,169 

♦Surplus 28,663  143,315  1,433 

Operating  Expenses 

Total— Per  Mile 

Maintenance  of  Way £13,166               $65,830  $658 

Maintenance  of  Equipment  and  Locomotive  Pwr.              20,493               102,465  1,025 

Traffic  and  Transportation  Expenses 20,153               100,765  1,008 

General  Expenses,  etc 15,596                 77,980  780 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  56 . 8  per  cent. 

Other   Income  above  includes   $120,000    (£24,000)   Subsidy  from   the   Government  of 
Salvador  and  $73,610  (£14,722)  net  earnings  from  Steamship  Service. 

Appropriation  of  Gross  Income 

1912-13 

For  Maintenance  Expenses 20.9% 

For  Traffic,  Transportation  and  General  Expenses 22 . 1% 

For  Fixed  Charges 39.3% 

For  Surplus 17.7% 


100.0% 

NOTES 

The  main  line  of  the  Salvador  Ry.  extends  from  the  Republic's  most  impor- 
tant port  Acajutla  (on  the  Pacific  Ocean)  to  San  Salvador,  the  capital  (sixty- 
five  miles),  with  a  branch  to  Santa  Ana  (twenty-five  miles)  and  with  an 
additional  ten  miles  of  road.  The  railway  is  the  most  important  one  in  the 
country  and  does  a  considerable  business  handling  coffee  and  other  products 
for  export  (total  exports  of  Salvador  for  1912,  $9,942,184  of  which  $4,860,511 
was  shipped  from  Acajutla),  also  building  materials,  general  merchandise,  etc. 
imported  and  shipped  to  the  interior. 

The  capital  authorized  and  outstanding  was  as  follows  on  June  30,  1913: 

Authorized    Outstanding 

Preference  Shares  (par  £10) £250,000  £250,000 

Ordinary  Shares  (par  £10) 250,000  250,000 

5%  Prior  Lien  Debentures 250,000  *208,400 

5%  Mortgage  Debentures 660,000  *593,000 

5%%  Terminal  Bonds... 110,000  *99,000 

*The  balance  of  these  issues  have  been  redeemed  by  Sinking  Funds. 

136 


AND     CENTRAL    AMERICA 

Dividends  of  6%  and  2%  respectively  were  paid  on  the  preference  shares 
and  on  the  ordinary  shares  in  both  1911—12  and  1912-13.  After  payments 
of  all  dividends  and  appropriations  to  reserves  (see  table  page)  a  balance  of 
£4,668  was  carried  forward  to  the  credit  of  Net  Revenue  Account.  The 
Salvador  Ry.  operates  a  steamship  line  and  now  has  three  steamers,  each  of 
about  1,000  tons  burden,  and  with  accommodations  for  twenty-four  passengers. 
Bimonthly  and  trimonthly  services  are  maintained  between  Salina  Cruz, 
Mexico,  and  Corinto,  Nicaragua,  calls  being  made  at  all  intermediate  ports 
in  Guatemala,  Salvador,  and  Honduras. 

The  steamship  line  earned  net  in  1912-13,  £14,722,  as  against  £11,207  in 
1911-12,  £6,056  in  1910-11  and  £2,356  in  1909-10. 

The  Salvador  Ry.  owns  2,761  shares  of  stock  of  the  Acajutla  Pier  carried 
at  a  value  of  (at  cost)  $72,905  (£14,581).  The  expenditure  of  this  company 
£6,212,  less  dividends  received  £4,005,  amounting  to  £2,207  net,  was  included 
in  the  Operating  Expense  of  the  Salvador  Ry. 


137 


THE     RAILWAYS     OF     SOUTH 


HONDURAS,  NICARAGUA  AND  COSTA  RICA. 


Honduras. 

The  Honduras  National  Ry.  extends  from  the  Caribbean  Port  known  as 
Puerto  Cortez,  to  Pimienta,  a  total  of  57  miles.  It  is  not  as  it  stands  to-day 
an  important  line,  but  the  story  of  what  it  might  have  been  forms  an  interesting 
chapter  in  "high  finance." 

The  railway  was  first  projected  back  in  1850  by  Mr.  E.  G.  Squier,  then  a 
United  States  Consul  in  Central  America,  and  still  famous  for  his  wonderful 
books  on  the  Latin  Republics.  He  conceived  the  idea  of  building  a  railway 
across  Honduras,  starting  at  Puerto  Cortez,  which  is  located  on  one  of  the 
best  harbors  in  Central  America,  to  a  point  on  the  Bay  of  Fonseca  on  the 
Pacific  side  of  the  Republic  (about  250  miles).  Mr.  Squier  formed  a  com- 
pany but  met  with  great  opposition  from  the  then  owners  of  the  Panama 
R.  R.  Finally  in  1858  the  line  was  surveyed  and  some  preliminary  work 
done  at  a  cost  of  about  $400,000,  which  expense  was  borne  by  the  Directors. 
Troubles  did  not  cease,  however,  and  as  a  climax  the  Civil  War  in  the  United 
States  broke  out  shortly  afterwards,  causing  the  abandonment  of  the  enter- 
prise. Being  unable  to  secure  means  to  resume  work  on  the  undertaking 
the    company    allowed    its    concession    to   lapse. 

In  1867  the  Government,  realizing  the  necessity  for  the  building  of  this 
railway,  contracted  a  loan  in  England  for  £1,000,000.  The  bonds  were 
issued  at  80%,  bore  interest  at  10%  and  were  secured  by  the  railway  and 
its  revenues,  and  upon  the  mahogany  forests  of  the  Republic.  The  Govern- 
ment undertook  to  provide  an  annuity  of  £140,000  from  1870  to  1884  in- 
clusive and  promised  the  subscribers  half  the  profits  of  the  projected  railway 
for  fifteen  years  after  the  redemption  of  the  loan. 

In  1869  another  loan,  bearing  interest  at  6%%,  was  issued  in  Paris  at 
75%.  The  amount  of  this  loan  was  £2,490,108  ($12,450,540).  It  was 
secured  by  a  mortgage  on  the  railways  and  forest  lands,  and  was  redeemable 
at  par  in  seventeen  annual  installments. 

In  1870,  a  third  loan  was  contracted,  secured  by  the  railway  and  the  produce 
of  state  domains.  This  loan,  like  the  one  of  1867,  bore  interest  at  10%, 
and  further  was  to  be  provided  with  a  Sinking  Fund  of  3%  per  annum. 

In  the  meantime,  work  was  started  on  the  railway  and  the  track  was  laid 
for  about  57  miles  at  a  cost  of  not  over  $26,500  a  mile  or  a  total  of  about 
$1,500,000.  The  Government's  terms  to  those  who  were  constructing  the 
road  was  most  liberal,  granting  ten  square  miles  of  land  for  every  mile  of 
road  built  and  other  privileges.  The  contractors  were  also  permitted  to 
issue  bonds  on  the  completion  of  a  stated  mileage.  The  Government's 
belief  in  the  good  faith  of  the  builders  was  such  that  it  failed  to  stipulate 
the  amount  of  bonds  to  be  issued.  The  result  was  that  the  contractors  took 
advantage  of  the  situation,  and  three  issues  of  bonds,  totalling  nearly  $30,000,- 

138 


AND     CENTRAL     AMERICA 

000  as  shown  above,  were  promptly  "marketed,"  the  purchasers,  without 
intimate  knowledge  of  the  circumstances,  being  attracted  by  the  lucrative 
return.  The  outcome  of  this  "financing"  was  not  hard  to  foretell,  and  in 
1873,  all  three  bond  issues,  together  with  another  loan  (about  £75,000)  which 
had  been  made  in  1S67  by  the  Republic,  but  which  had  nothing  to  do  with 
the  railways,  went  into  default,  the  interest  on  the  railway  loans  having  been 
paid  mostly  out  of  principal.  The  redemption  fund  had,  up  to  that  time, 
reduced  the  debt  to  £5,398,570  ($26,992,850). 

Thus  the  unfortunate  little  country  found  itself  saddled  with  an  enormous 
debt,  far  beyond  its  means  to  repay,  and  without  any  funds  to  continue 
the  building  of  the  ill-fated  railway. 

Various  attempts  have  since  been  made  by  the  Government  to  settle 
with  the  bondholders,  but  to  no  avail.  In  1887,  Mr.  Binney,  the  then  Consul 
General  of  Honduras  in  London,  obtained  a  concession  for  the  completion 
of  the  railway,  with  conditions  which  would  ha**e  enabled  the  Republic  to 
have  settled  its  obligations  in  full.  The  plan  called  for  the  exchange  of  the 
defaulted  bonds  with  arrears  of  interest  for  £100  shares  in  the  railway  com- 
pany incorporated  to  take  over  the  enterprise.  For  lack  of  funds  this  plan 
fell  through   in    1892. 

Later,  in  1897,  a  concession  was  granted  to  the  "Honduras  Syndicate," 
an  American  concern,  which  soon  became  involved  in  a  series  of  wrangles 
with  the  bondholders'  committees.  And  finally,  on  May  26,  1903,  the  Gov- 
ernment took  over  the  existing  railway  and  ran  the  same  for  a  short  period, 
when  it  was  again  sublet  for  a  nominal  rental. 

Meanwhile,  the  partly  completed  railway  was  allowed  to  fall  into  deplorable 
condition.  A  bridge  across  the  Chamelicon  River,  collapsed  and  was  not 
replaced  for  upwards  of  a  dozen  years,  rendering  20  miles  of  road  useless. 
In  1900  this  bridge  was  replaced,  but  the  railway  was  not  extended  nor  was 
its  physical  condition  improved  until  during  the  early  part  of  1912  the  Gov- 
ernment of  Honduras  again  took  it  over.  The  line  was  able  to  report  a  profit 
of  $34,289  during  the  first  six  months  of  national  control.  Part  of  the  road 
was  improved  and  railway  material  amounting  to  $34,000  was  imported 
from  the  United  States. 

Recently  additional  locomotives  were  purchased  in  the  United  States, 
increasing  the  total  number  to  ten  and  some  further  work  was  done  improving 
the  roadbed. 

The  arrangements  for  the  final  settlement  of  the  debt  have  never  been 
completed,  and  the  Republic,  although  it  has  vast  resources,  has  been  greatly 
hampered  in  its  development.  The  £5,398,570  principal  and  four  or  five 
times  that  amount  of  interest  remain  unpaid.  That  Honduras  was  the 
victim  of  gross  fraud  is  universally  acknowledged.  Her  resources,  though 
considerable,  are  insufficient  to  ever  repay  these  obligations,  nor  will  she 
be  able  to  keep  pace  with  her  sister  American  Republics  until  means  have 
been  found  to  raise  additional  funds.  In  1912,  a  small  loan  was  contracted 
in  the  United  States. 

At  the  date  of  writing  Mr.  Minor  F.  Keith  and  others  representing  United 
Fruit  Co.  interests  were  negotiating  with  the  bond  holders'  committees  for  the 
purchase  of  the  railway  concession  and  other  assets  securing  the  loans. 

The  total  railway  mileage  in  operation  during  1913  in  this  Republic,  was 

139 


THE     RAILWAYS     OF     SOUTH 

about  175  miles.  This  included  the  Honduras  National  Ry.  and  upwards  of 
115  miles  of  private  lines  built  mostly  to  connect  with  the  banana  lands 
situated  near  the  Caribbean  Coast. 

In  October,  1912,  a  contract  was  signed  by  the  representative  of  the  Inter- 
national Rys.  of  Central  America  and  the  Government  of  Honduras  for 
the  construction  of  the  Pan-American  Ry.  across  Honduras,  connecting 
Salvador  with  Nicaragua.  This  will  be  especially  important  for  the  De- 
partments of  Choluteca  and  Valle,  which  have  both  agricultural  and  mineral 
resources. 

At  the  close  of  1913  the  railway  of  Vaccaro  Bros.  &  Co.,  banana  mer- 
chants, consisted  of  about  89  miles  of  main  line  and  branches,  passing  through 
an  extensive  area  of  rich  banana  land.  The  main  line  extends  from  Ceiba 
in  a  southwesterly  direction  to  San  Juan,  from  which  point  it  is  being  extended 
coward  the  seacoast  at  Boca  Cerrada,  to  pass  around  the  northern  end  of  the 
Aguacate  range  of  mountains  and  enter  the  Lean  River  Valle}'  near  Colorado, 
up  which  valley  it  will  pass  to  Yoro,  the  chief  city  of  the  Department  of  the 
same   name. 

The  United  Fruit  Co.  had  about  35  miles  of  narrow-gauge  line  in  operation 
in  the  vicinity  of  Colorado  at  the  close  of  1913.  The  same  company  has  also 
about  4  miles  of  tramway  in  use. 

The  Tela  Fruit  Co.  has  several  miles  of  standard-gauge  line  in  operation 
near  Tela,  and  plans  to  build  additional  mileage  in  the  immediate  future. 
The  Honduras  Rubber  Co.  and  the  Las  Palmas  Plantation  Co.  also  operate 
short,  narrow  gauge  railways,  and  are  building  additional  mileage.  The 
materials  and  equipment  used  on  all  of  these  lines  are  of  American   make. 

The  Tela  R.  R.  has  a  concession  for  the  construction  of  a  wharf  at  Tela 
and  a  90-mile  railway  from  that  port  to  Progreso,  passing  through  the  rich 
Ulua  River  banana  lands.  The  work  will  be  pushed  forward  rapidly  during 
the  present  year,  and  it  is  expected  that  at  least  30  miles  of  the  line  will  be 
completed   this   year. 

The  primary  object  of  all  the  railways  in  this  district  is  the  transportation 
of  bananas  to  the  seacoast,  but  the  Vaccaro  line  terminating  at  the  port 
of  Cerba,  regularly  carries  both  passengers  and  freight,  as  will  the  Tela  R.R 
upon    completion. 

Additional  plans  call  for  the  building  of  a  line  from  Trujillo  or  some  other 
Atlantic  Port  to  Juticalpa,  Teguciagalpa  (the  capital),  etc.,  a  portion  of 
which  route  has  been  surveyed.  The  proposed  route  of  this  railway —  the 
Trujillo  to  Juticalpa  Ry. — follows  the  valley  of  the  Bonila  River  toward 
Ironia  and  continues  from  that  point  to  the  Sico  Valley,  and  so  on  to  Juticalpa 
(population,  20,000).  This  railway  will  open  up  a  vast  tract  of  rich  country 
and  will  materially  benefit  the  Republic.  Its  eventual  completion  to  Tegu- 
cialpha  will  mean  much  for  the  isolated  capital,  which  is  only  reached  from 
the  Atlantic  Coast  with  great  difficulty,  travellers  preferring  to  go  via  Panama 
or  via  Guatemala,  and  via  a  Pacific  Coast  steamer  to  Amapala,  the  Pacific 
port. 

The  area  of  Honduras  is  about  45,000  square  miles  and  its  population  is 
estimated  at  about  600,000.  The  principal  agricultural  products  are  bananas, 
coffee,  cocoanuts,  tobacco,  rice,  etc.  Some  cattle  are  exported,  largely  to 
Cuba,  etc.  Silver  is  mined  in  large  quantities  near  Teguciagalpa,  while 
opal,  copper  and  coal  mines  have  also  been  explored  with  more  or  less  success. 

140 


AND     CENTRAL    AMERICA 
Nicaragua. 

Nicaragua  has  one  important  railway, — the  Pacific  Ry.  of  Nicaragua,  a 
line  with  a  total  length  of  163  miles,  extending  from  Corinto  to  Diriamba 
(see  Pacific  Ry.  of  Nicaragua). 

The  Atlantic  side  of  the  Republic  is  not  well  provided  with  railways,  there 
being  at  last  accounts,  not  over  25  miles  in  operation,  mostly  short  lines  to 
banana  plantations. 

An  extensive  programme  of  railroad  building  has  been  mapped  out  for  the 
future,  including  a  line,  partly  surveyed,  from  the  Caribbean  port  of  Blue- 
fields  to  Rama,  on  the  Siquia  River,  continuing  from  that  point  to  the  shores 
of  Lake  Nicaragua,  probably  at  San  Ubaldo,  the  length  of  the  road  to  be 
about  150  miles.  The  Pan-American  Ry.  will,  of  course,  traverse  the  Republic. 
A  portion  of  the  Pacific  Ry.  of  Nicaragua  (Corinto  to  Grenada)  will  be 
used,  but  large  additional  mileage  will  have  to  be  constructed. 

Nicaragua  has  an  area  of  about  49,200  square  miles,  being  slightly  larger 
than  the  State  of  New  York,  and  a  population  of  about  600,000.  The  foreign 
commerce  of  the  Republic  was  last  estimated  at  $7,500,000,  of  which  $4,600,000 
represented  exports. 


Costa  Rica. 

Costa  Rica,  like  Guatemala  and  Panama,  is  possessed  of  a  coast  to  coast 
rail  route.  The  Caribbean  or  Atlantic  side  of  the  Republic  is  served  by  the 
Northern  Ry.  of  Costa  Rica  (owned  by  the  United  Fruit  Co.),  which  leases 
the  British  owned  Costa  Rica  Ry.  (see  that  company).  The  main  line  of 
the  railway,  which  was  a  somewhat  costly  one  to  build,  climbs  from  the 
Caribbean  tidewater  terminal  Port  Limon  to  San  Jose,  the  capital,  where 
connection  is  afforded  with  the  Pacific  Ry.  of  Costa  Rica  running  to  the 
Port  of  Puntarenas  on  the  Pacific  Coast  (69  miles).  These  two  lines  are 
the  nation's  interior  highways  of  commerce.  The  total  railway  mileage  in 
actual  operation  was,  at  last  reports,  427  miles  (gauge  3  ft.  6  in.),  of  which 
69  miles  (Pacific  Ry.  of  Costa  Rica)  belong  to  the  Republic,  141  to  the  North- 
ern Ry.  of  Costa  Rica  and  217  to  the  Costa  Rica  Ry.  The  Northern  Ry. 
at  last  accounts  was  constructing  a  railway 

This  little  republic,  with  an  area  of  23,000  square  miles  and  a  population 
of  399,424,  is  perhaps  the  foremost  of  the  Central  American  Republics 
The  country  has  great  agricultural  and  no  small  amount  of  mineral  wealth 
much  of  which  remains  undeveloped.  The  plantations  of  Costa  Rica  fur- 
nished in  1912  to  the  world  11,000,000  bunches  of  bananas,  the  value  of 
this  product  ranking  only  second  to  the  value  of  coffee  exported.  The 
foreign  trade  for  1912  amounted  to  $20,258,830. 


Pacific  Ry.  of  Nicaragua. 

This  railway  has  its  terminus  at  Corinto,  the  principal  port  of  the  Republic 
of  Nicaragua,  located  on  the  Pacific  Ocean.  It  follows  the  coast  in  a  north- 
westerly direction  for  a  short  distance  and  then  strikes  northeasterly  to 
Chinandegua  (population  12,000),  then  south  to  Leon,  which  is  the  largest 
city  of  the  Republic  (population    45,000),    Managua,  the  capital  (population 

141 


THE     RAILWAYS    OF     SOUTH 

40,000),  Masaya  (population  20,000),  Grenada  (population  38,000),  and 
Diriamba,  a  total  of  163  miles.  The  line  was  formerly  known  as  the  National 
R.  R.  of  Nicaragua.  The  construction  of  the  line  was  begun  in  1884  and 
practically  completed  in  1903.  The  gauge  used  is  three  feet,  six  inches, 
the  maximum  gradient  2.8%  and  the  rails  of  thirty  pound  to  forty  pound 
weight. 

In  the  year  1903  the  Republic  leased  the  line  to  an  individual  for  an  annual 
rental  equal  to  25%  of  the  Gross  Earnings,  the  Lessee  to  spend  an  additional 
10%  yearly  for  maintenance  and  repairs.  This  lease  was  presumably  can- 
celled during  1912. 

The  Pacific  Ry.  of  Nicaragua  which  has  succeeded  the  former  National 
R.  R.  of  Nicaragua,  was  incorporated  in  Maine,  June  10,  1912,  with  a  capi- 
talization of  $3,300,000  common  stock,  51%  of  which  is  owned  by  Messrs. 
Brown  Bros.  &  Co.  and  Messrs.  J.  &  W.  Seligman  &  Co.  of  New  York  and 
the  balance  (49%)  by  the  Government  of  Nicaragua.  The  property  is  being 
thoroughly  rehabilitated  and  its  management  is  in  charge  of  Messrs.  J.  G. 
White  &  Co.  of  New  York.  No  statement  of  earnings  were  available  at 
the  date  of  going  to  press. 


Costa  Rica  Ry. 

This  railway  is  leased  to  the  Northern  Ry.  of  Costa  Rica,  which  company 
is  controlled  by  the  United  Fruit  Co.  The  Northern  Ry.  of  C.  R.  paid  to  the 
Costa  Rica  Ry.  as  rental  in  1912-13  the  sum  of  $745,500  (£149,100).  Addi- 
tional receipts,  mostly  from  interest  on  investments  and  deposits,  brought  the 
total  up  to  $786,164  (£157,233).  Fixed  charges,  including  $35,500  (£7,100), 
redemption  of  Prior  Mortgage  Debentures,  amounted  to  $520,464  (£104,093). 
From  the  Surplus  of  $265,700  (£53,140),  $180,000  (£36,000)  was  paid  in 
dividends,  representing  2%  on  the  stock,  and  the  balance,  $85,700  (£17,140), 
was  transferred  to  "Reserve",  (as  against  $71,533  so  transferred  in  1911-12). 
This  raised  the  Fund  to  $736,503  (£147,301). 

The  Prior  Mortgage  Debentures  are  divided  into  two  series,  $1,000,000 
(£200,000)  of  each  series  being  authorized  of  which  $1,000,000  (£200,000) 
and  $900,000  (£180,000)  have  been  issued.  $258,000  (£51,600)  and  $99,500 
(£19,900)  of  the  Debentures  have  been  redeemed  through  Sinking  Fund 
operations.  The  First  Mortgage  Debentures,  of  which  $3,275,000  (£655,000) 
have  been  authorized  and  issued,  bear  interest  at  6%  per  annum.  The 
Second  Debentures  ($3,000,000  authorized  and  issued)  are  entitled  to  interest 
at  6%  per  annum,  non-cumulative,  if  earned. 

The  entire  $1,000,000  stock  of  the  Northern  Ry.  of  Costa  Rica  (owned,  as 
stated,  by  the  United  Fruit  Co.)  is  deposited  with  a  trustee  under  the  pro- 
vision of  the  lease  with  the  Costa  Rica  Ry.  The  lease  expires  1990.  A  total 
of  376  miles  of  road  was  operated  by  the  Northern  Ry.  of  Costa  Rica  on 
June  30,  1913.  Of  this  mileage  upwards  of  217  miles  belong  to  the  Costa 
Rica  Ry.  The  railroad  is  of  3  ft.  6  in.  gauge;  is  well  constructed,  having 
steel  and  iron  bridges,  suitable  stations  and  sidetracks.  Excellent  passenger 
trains  carrying  parlor  cars  are  operated  between  the  sea  and  the  capital. 


142 


AND     CENTRAL     AMERICA 


PANAMA. 


The  Panama  R.  R.,  described  hereafter,  forms  the  little  Republic's  one 
highway  of  commerce,  and  its  per  mile  earnings  for  years  have  been  phe- 
nomenally large.  When  the  Canal  opens,  the  railroad's  importance  will 
be  lessened,  but  its  income  will  probably  still  be  large.  A  line  has  been 
surveyed  from  David,  an  important  town  near  the  border  with  Costa  Rica, 
to  Empire,  Canal  Zone,  a  station  on  the  Panama  R.  R.,  about  361  miles. 
This  railway,  when  built,  together  with  an  extension  to  the  Colombian  frontier, 
will  form  a  part  of  the  proposed  Pan-American  System.  The  United  Fruit 
Co.  operates  several  short  lines  in  Panama,  largely  to  connect  its  banana 
plantations  with  various  seaports.  One  of  the  most  important  of  these 
short  railways  is  the  Changuinola  Ry.  running  from  Bocas  del  Toro  to  San- 
chez, etc. 

This  Republic  is  blessed  with  fertile  soil,  has  an  abundant  rainfall,  and  is 
otherwise  fitted  for  extensive  cultivation,  stock  raising,  etc.  Its  increasing 
cultivation,  the  great  number  of  tourists  which  are  being  attracted  to  its 
shores  and  the  cheap  labor  which  will  be  procurable  upon  the  completion  of 
the  Canal,  are  adding  and  will  continue  to  add  to  the  nation's  wealth,  making 
possible  railway  development  which  will  open  up  its  resources,  particularly 
those  of  the  interior  uplands.  Panama  is  not  without  mineral  wealth  as 
gold  exists  and  is  mined,  while  silver,  lead,  aluminum  and  asbestos  have 
been  variously  located.  Copper  and  coal  have  been  found  near  Bocas  del 
Toro  and  Golfo  Dulce,  salt  near  Aguadulce,  manganese  at  Nombre  de  Dios, 
lignite  on  the  Canal  zone,  and  iron  in  variable  quantities  nearly  everywhere 
throughout  the  Isthmus.  In  regions  of  former  volcanic  activity  numerous 
thermal    medicinal    springs    are   found. 

The  area  of  the  Republic  is  32,380  square  miles,  and  the  population  in  1910 
was  419,029.  The  total  length  of  railways  in  operation  in  1913,  including 
the  Panama  R.  R.,  the  United  Fruit  Co.'s  railroads  and  other  narrow  gauge 
private  lines,  with  the  exception  of  the  first  named,  built  largely  for  the 
banana  trade  but  carrying  publicly  both  freight  and  passengers,  amounted 
to  about  202  miles. 


143 


THE     RAILWAYS     OF     SOUTH 
Panama  R.  R. 

Avg.  Miles  Avg.  Miles 


Year         Oper.  Gross  Surplus 

1907-8  50       $4,541,438       $1,390,017 

1908-9  50         4,267,162  1,522,780 


Year  Oper.        Gross  Surplus 

1910-11        50       $4,149,445       $1,711,080 
1911-12       51         4,677,366  1,762,049 


1909-10         50         4,224,062  1,254,778        |        1912-13     *62       t4,599,163  2,179,176 

*Does  not  include  mileage  of  Atlantic  Terminal  (32  miles)  and  Pacific  Terminal  (12  miles). 
tDoes  not   include  $2,151,158   Gross   Revenues  from  Steamship   Line,    ($1,996,299  in 
1911-12  and  $1,860,111  in  1910-11).     See  below. 

Stock  Outstanding  *Due  U.  S.  Government 

June  30,  1913  June  30,  1913 

Common $7,000,000  For  Improvements,  etc $1,399,115 

For  Funds  Advanced  to  Pay 
I  off  Bonds 1,848,217 

*In  accordance  with  an  act  of  Congress,  March,  1911,  the  Company  has  been  relieved 
from  further  payments  as  to  principal  and  interest.  The  Company,  however,  until  further 
action,  is  held  accountable  for  this  indebtedness. 

Capitalization                                 Total  Per  Mile 

Stock $7,000,000  $112,903 

Due  U.  S.  Government 3,247,332  52,376 

Total 10,247,332  165,279 

Fixed  Charges  below  include  $94,296  for  Rentals. 

Income  Account  Year  Ending  June  30,  1913 

Average  miles  operated  62. 

Operating  Revenues $4,599,i63 

Operating  Expenses 

Net  Operating  Revenues 

Other  Income  (incl.  $114,713  from  Rentals)... 

Total  Net  Income 

Fixed  Charges  (incl.  for  Income  Tax.,  $19,289) 
Surplus 


Maintenance  of  Way 

Maintenance  of  Equipment 

Traffic  Expenses 

Transportation  Expenses.  .  . 
General  Expenses 


Operating  Expenses 


Total 

Per  Mile 

4,599,163 

$74,180 

2,770,310 

44,682 

1,828,853 

29,498 

463,908 

7,482 

2,292,761 

36,980 

113,585 

1,832 

2,179,176 

35,148 

$391,193 

$6,309 

470,824 

7,594 

13,852 

224 

1,553,616 

25,058 

340,825 

5,497 

Ratio  of  Operating  Expenses  to  Operating  Revenues,  60.2  per  cent. 

Other  Income  above  includes  $221,490  net  profit  from  Operations  of  Steamship  Lines 
(Gross,  $2,151,158;  Expenses,  $1,929,668). 

Appropriation  of  Gross  Income 

1912-13  1911-12  1910-11 

For  Maintenance  Expenses 17.0  ('(  16.1  c'c  19.4% 

For  Traffic,  Transportation  and  General  Expenses 37.7  c7  39.9%  39.0% 

For  Fixed  Charges 2.3  <■}  7.2%  1.3% 

For  Surplus 43. 0r,  36.8C7  40.3% 


100.0%        100.0%        100.0% 

1912-13  1911-12  1910-11         1909-10 

Ton  miles  per  mile  of  road 1,301,088  1,409,679  1,186,344  869,645 

Passenger  miles  per  mile  of  road 562,199  631,483  566,763         549,285 

NOTES. 

This    railroad    is    controlled    by  the    United    States    Government    through 
stock  ownership. 

Dividends  on  the  stock  have  been  paid  in  recent  years  as  follows:   1901, 
2%;  1902  and   1903,  4%;  1904,  6V2%;  1905,  5%;  none  since.     The  Surplus 

144 


AND     CENTRAL     AMERICA 

Earnings  for  1912-13  as  reported  ($2,179,175)  were  equal  to  over  31%  earned 
on  the  $7,000,000  capital  stock. 

No  bonds  are  outstanding.  By  Act  of  Congress  the  sum  of  $2,148,217  was 
appropriated  by  the  United  States  Government  to  redeem  on  October  1,  1907, 
at  105  and  interest,  in  accordance  with  the  terms  of  the  Mortgage,  all  of  the 
then  outstanding  bonds  (First  Mortgage  4j^s)  of  the  Panama  R.  R.  On  June 
30,  1913,  $1,848,217  of  this  sum,  together  with  $1,399,115  cash  appropriated 
through  the  Isthmian  Canal  Commission  (original  appropriation  was  $2,- 
786,830),  remained  due  to  the  U.  S.  Government.  The  company  has  been 
released  from  further  payments  on  account  of  principal  and  interest  upon 
its  indebtedness  to  the  Government,  for  which,  however,  until  further  action 
the  company  is  still  held  accountable. 

This  company  operates  directly  a  line  of  railroad  in  the  Isthmus  of  Panama, 
extending  from  Colon  on  the  Atlantic  Coast  to  Panama  on  the  Pacific  Coast 
(47  miles)  with  a  branch  to  the  Port  of  Balboa  (5  miles)  and  a  second  main  line 
(8  miles);  also  a  line  of  steamships,  operating  between  Colon  and  New  York. 
(See  a  following  paragraph.)  The  company  also  controls  the  operations  of  the 
Atlantic  Terminal  (3>2^miles)  and  the  Pacific  Terminal  (12  miles),  etc.  The 
total  mileage  owned  and  leased  (including  18  miles  of  intermediate  sidings) 
amounted  to  143  miles. 

In  March,  1910,  the  Panama  R.  R.  entered  into  a  contract  with  the  Panama 
Government  to  survey  a  line  of  standard  and  narrow  gauge  railroad  extending 
from  Empire,  Canal  Zone  (on  the  main  line  of  the  Panama  R.  R.),  to  David, 
Panama  (near  the  boundary  line  of  Costa  Rica),  with  branches.  The  total 
mileage  of  the  proposed  line  aggregates  361  miles. 

The  Panama  Steamship  Co.  (owned  by  the  Railroad  Co.)  operates  a  fleet 
of  six  steamships.  Four  of  these  steamers  (two  of  9,606  gross  tonnage  and  two 
of  5,667  gross  tonnage)  are  chartered  and  two  are  owned  (gross  tonnage  3,905 
and  2,605  tons,  respectively).  In  addition,  the  Steamship  Co.  owns  a  con- 
siderable fleet  of  lighters,  tugs,  etc.  The  Gross  Revenue  from  the  Steamship 
Line  for  1912-13  was  $2,151,158,  against  $1,996,209  in  1911-12;  $1,860,111  in 
1910-11  and  $1,876,727  in  1909-10,  and  the  Net  Profit  was  $221,490,  against 
a  Net  Loss  of  $305,743  in  1911-12,  a  Net  Profit  of  $77,188  in  1910-11  and 
$167,952  in  1909-10. 

The  Operating  Revenues,  per  mile  of  road  operated,  of  the  Panama  R.  R., 
are  the  second  largest  of  any  railroad  mentioned  in  this  book. 

Of  the  Net  income  of  the  company  for  1911-12,  $1,385,568  was  applied  to 
additions  and  betterments  of  the  plant  and  equipment,  against  $181,533  in 
1910-11. 

The  balance  sheet  of  the  Panama  R.  R.  as  of  June  30,  1913,  showed  Work- 
ing Assets  (including  $2,973,375  cash,  $1,818,589  material,  coal  and  supplies 
and  $1,590,234  marketable  securities  owned),  $8,017,595,  and  Working  Lia- 
bilities, $1,319,086.  Equipment  and  Plant  Depreciation  Reserves  totalled 
$1,478,552,  and  there  was  a  credit  balance  to  Profit  and  Loss  of  $15,379,522. 

The  business  of  the  Commissary  Department  in  1912-13  amounted  to 
$7,630,403. 


145 


PART  III. 


THE  WEST  INDIES 


RAILWAYS  OF  SOUTH  AND  CENTRAL  AMERICA 


CUBA. 


On  the  following  pages  are  given  tables  and  notes  descriptive  of  the  various 
important  railway  systems  of  Cuba.  The  principal  system,  the  United  Rys. 
of  the  Havana  &  Regla  Warehouses,  has  been  acquiring  other  railways  for 
several  years  and  to  date  owns  over  98%  of  the  stock  of  the  Western  Ry.  of 
Havana  and  a  controlling  interest  in  the  securities  of  the  Havana  Central 
R.  R.  Late  in  1913,  the  United  Company  made  an  attractive  offer  to  the 
shareholders  of  the  Cuban  Central  Rys.  and  to  date  of  going  to  press  had 
acquired  a  large  block  of  stock.  These  two  companies  jointly  maintain 
through  passenger  service  between  Havana  and  Cienfuegos,  while  the  United 
Company  and  the  Cuba  R.  R.  (controlled  by  the  Cuba  Company)  runs 
through  express  trains  from  Havana  to  Santiago.  The  entire  island,  in  fact, 
is  well  served  with  railway  lines  from  end  to  end. 

Cuba  has  an  area  of  44,000  square  miles  and  a  population  of  1,572,797. 
The  total  length  of  railroads  in  operation  exceeds  2,000  miles. 

Railway  lines,  in  addition  to  those  described  on  the  following  pages,  include 
the  National  Rys.  of  Cuba,  incorporated  in  1912  in  the  United  States  to  take 
over  the  Jucaro  &  Fernando  (Jucaro  to  San  Fernando,  43  miles),  the  Puerto 
Principe  &  Nuevitas  Ry.  (Camaguez  to  Nuevitas,  46  miles)  and  the  North 
Coast  Ry.  (to  have  a  total  length  of  200  miles).  The  National  Rys.  of  Cuba 
has  a  capitalization  of  $3,500,000  6%  (non-cumulative)  Preferred  Stock  and 
$16,500,000  Common  Stock.  The  Cuban  American  Sugar  Company  also 
operated  on  June  30,  1913,  the  Chapana  R.  R.  operating  about  155  miles  of 
railroad  between  a  number  of  sugar  plantations  and  the  company's  wharves 
and  warehouses  at  Juan  Claro.  The  lines  act  as  common  carriers  handling 
both  passengers  and  freight. 


149 


THE     RAILWAYS     OF     SOUTH 
Cuba  R.  R. 


Avg.  Miles 

Avg.  Miles 

Year 

Oper. 

Gross 

Surplus 

Year 

Oper.           Gross 

Surplus 

1904-5 

408 

$1,029,259 

$37,448 

1909-10 

455         $2,500,172 

$672,089 

1905-6 

421 

1,619,082 

287,861      | 

1910-11 

602           2,994,410 

797,316 

1906-7 

426 

1,935,092 

332,424 

|      1911-12 

602           3,726,339 

1,059,862 

1907-8 

440 

1,988,676 

355,423      1 

1912-13 

602           4,478,194 

1,414,280 

1908-9 

444 

2,115,984 

550,799 

Stock  Outstanding 

June  30,  1913 

♦Common $10,000,000 

Preferred  (6%) 10,000,000 


Bonds  Outstanding 

June  30,  1913 
Fixed  Interest $16,030,000 


♦Includes  $3,874,000  common  stock  issued  in  1912-13  to  the  Cuba  Co.  which  controls 
the  Cuba  R.  R. 

Capitalization 

Total  Per  Mile 

Stock $20,000,000  $32,223 

Bonds 16,030,000  26,628 

Total 36,030,000  58,851 

In  Operating  Expenses  below  under  Maintenance  of  Way,  there  is  included  $96,000  for 
Replacement  of  Bridges,  Trestles  and  Crossties.  Similar  Expenditures  included  in  Main- 
tenance of  Way  in  previous  years  were:  1911-12,  1910-11,  1909-10  and  1908-9,  $96,000 
annually;  1907-8,  $156,093;  1906-7,  $157,738;  1905-6,  $113,982;  and  1904-5,  $20,155. 

Income  Account  Year  Ending  June  30,  1913 

Average  miles  operated,  602. 

Total  Per  Mile 

Gross  Receipts $4,478,194  $7,439 

Operating  Expenses 2,295,738  3,814 

Net  Receipts 2,182,456  3,625 

Other  Income  (*Antilla  Terminals) 33,046  55 

Total  Net  Income 2,215,502  3,680 

Fixed  Charges 801,222  1,331 

Surplus 1,414,280  2,349 


Operating  Expenses 

Maintenance  of  W  ay 

Maintenance  of  Equipment 

Conducting  Transportation 

General  Expenses 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  51.3  per  cent. 

*Gross  $153,846;  Expenses  $120,800;  Net  $33,046. 

Other  Income  above  includes  $33,046  from  Hire  of  Equipment. 


Total 
$644,915 

324,354 
1,139,608 

186,861 


Per  Mile 

$1,071 

539 

1,893 

311 


Appropriation  of  Gross  Income 

1912-13   1911-12     1910-11    1909-10  1908-9  1907-8 

For  Maintenance  Expenses....         21.5%        20.4%        21.3%,        22.4%  23.0%  29.6% 
For  Traffic,  Transportation  and 

General  Expenses 29.4%        30.5%        32.7%        33.6%  32.2%  34.2% 

For  Fixed  Charges 17.8%        20.7%        19.4%        17.3%  18.8%  18.4% 

For  Surplus 31.3%,       28.4%       26.6%       26.7%  26.0%  17.8% 

100.0%      100.0%      100.0%      100.0%  100.0%  100.0% 

1912-13          1911-12  1910-11 

Miles,  yards  and  sidings 71  68  62 


150 


AND     CENTRAL     AMERICA 

The  surplus  to  the  credit  of  Profit  and  Loss  as  of  June  30,  1913,  was  $3,396, 
841.  Current  Assets  as  of  that  date  (including  $729,649  material  and  supplies) 
were  $2,697,164  and  Current  Liabilities  amounted  to  $527,455. 

An  issue  of  Improvement  and  Equipment  5%  bonds  was  authorized  in 
June,  1910,  to  be  issued  in  amounts  not  to  exceed  $12,000  per  mile  of  main 
track.  In  July,  1912,  $4,000,000  of  these  bonds  were  sold,  and  the  proceeds 
used  to  retire  $2,000,000  6%  2-year  Notes  due  August  15,  1912,  and  for  exten- 
sions, etc. 

About  173  miles  of  road,  known  as  the  "Bayamo  Lines,"  were  completed 
in  the  fall  of  1910.  To  aid  in  the  construction  of  these  lines  the  Government 
of  Cuba  granted  a  subsidy  of  $8,000  per  mile  on  154j^  miles  of  line.  These 
lines  opened  to  railroad  traffic  a  rich  and  well  populated  section  of  the  Island. 

The  amount  due  from  the  Cuban  Government  on  subsidy  account,  amounted 
on  June  30,  1913,  to  $821,109,  payable  in  three  equal  annual  installments. 
There  was  expended  bv  the  Cuba  R.  R.  on  the  "Bayamo  Lines"  from  1909-10 
to  1911-12,  $4,545,364. 

From  1905  to  1913  there  has  been  an  increase  in  Gross  Earnings  of  350% 
and  in  Net  Earnings  of  650%. 

This  line,  completing  the  railroad  connection  between  Havana  and  Santiago, 
and  Antilla,  on  the  Bay  of  Nipe,  is  of  standard  gauge  and  similar  in  its  con- 
struction and  equipment  to  the  better  class  of  northern  lines.  All  of  its  im- 
portant bridges  are  of  steel  and  masonry,  and  the  line  generally  is  rock- 
ballasted.  The  main  line  passes  along  the  center  of  the  eastern  and  wider  half 
of  Cuba,  and  opens  up  a  rich  agricultural  region,  and  passes  through  the  tropical 
forests  of  mahogany,  cedar,  lignum  vitae,  ebony  and  many  other  trees.  The 
Parana  and  Guinea  grasses,  covering  most  of  the  open  districts  and  standing 
from  six  to  twelve  feet  high  and  green  the  year  round,  together  with  frequent 
running  streams,  make  this  an  ideal  cattle  country.  No  food  has  to  be  put 
up  and  no  shelter  is  required.  The  soils  are  adapted  to  sugar,  tobacco,  cotton, 
corn  and  an  endless  variety  of  products.  The  swamps  which  occur  at  places 
along  the  coasts  of  Cuba  are  absent  from  the  interior,  which  is  high,  dry  and 
exceptionally  healthy. 

The  Cuba  Co.  which  as  stated  previously  controls  this  enterprise  owns 
upward  of  300,000  acres  of  land,  including  town  lots  and  a  sugar  plantation, 
comprising  15,500  acres,  also  a  large  sugar  mill  at  Tatibonco,  and  the  town 
of  Antilla,  fast  becoming  one  of  the  most  important  ports  in  the  island. 

Securities  of  the  Cuba  R.  R.  are  listed  on  the  New  York  and  London  Stock 
Exchanges. 


151 


Avg.  Miles 

Year 

Oper. 

1905- 

•6 

241 

1906- 

-7 

241 

1907- 

8 

241 

1908- 

-9 

241 

Avg.  Miles 

Gross  Receipts 

Year            Oper. 

$2,031,745          £406,349 

1909-10       241       $1 

2,146,550             429,310 

1910-11       255 

1,799,740             359,948 

1911-12       269 

2,171,785             434,357 

1912-13       297 

THE     RAILWAYS     OF     SOUTH 
Cuban  Central  Ry. 

Miles 

Gross  Receipts 

$2,326,550  £465,310 

2,300,430  460,086 

2,499,910  499,982 

3,088,014  617,605 

Stock  Outstanding  Bonds  Outstanding 

June  30,  1913  June  30,  1913 

Ordinary $4,500,000  Fixed  Interest $4,556,062 

♦Preference  (5^%) 6,000,000  Debenture  Stock 4,500,000 

♦Cumulative. 

Capitalization 

Total Per  Mile 

Stock £2,100,000  $10,500,000  $35,353 

Bonds 1,811,212  9,056,062  30,492 

Total 3,911,212  19,556,062  65,845 

Fixed  Charges  below  include  $43,196  (£8,639)  for    rentals,  $41,233  (£8,247)  for  Taxes 
(including  Income  Tax)  and  $35,000  (£7,000)  Premium  Written  Off. 

Income  Account  Year  Ending  June  30,  1913 

Average  miles  operated,  297. 

Gross  Receipts 

Operating  Expenses 

Net  Receipts 

Other  Income 

Total  Net  Income 

Fixed  Charges 

♦Surplus 


Total 

Per  Mile 

£617,603 

$3,088,014 

$10,397 

352,689 

1,763,443 

5,938 

264,914 

1,324,569 

4,459 

1,996 

9,981 

34 

266,910 

1,334,550 

4,493 

124,035 

620,175 

2,088 

142,875 

714,375 

2,405 

£105,875 

$529,374 

$1,782 

61,774 

308,870 

1,040 

128,215 

641,075 

2,159 

56,825 

284,124 

957 

Operating  Expenses 

Maintenance  of  Way  and  Telegraph 

Maintenance  of  Equipment 

Traffic  and  Transportation  Expenses 

General  Expenses 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  57.1  per  cent. 

*This  Surplus  before  deducting   £47,000  for  Reserve,  Renewal  and    Casualty  Funds, 
etc. 

Appropriation  of  Gross  Income 

1912-13 

For  Maintenance  Expenses 27.0% 

For  Traffic,  Transportation  and  General  Expenses 39.9% 

For  Fixed  Charges 20.0% 

For  Surplus 23.1% 


100.0% 

NOTES. 

This  railroad  (chartered  1902)  is  controlled  by  the  Cuba  Co.  The  latter 
company  was  incorporated  in  1900  in  New  Jersey,  to  operate  railways,  trac- 
tion lines  and  other  properties  in  the  Republic  of  Cuba. 

The  amount  of  common  stock  outstanding  is  $10,000,000.  This  includes 
$3,874,000  stock  issued  to  the  Cuba  Co.  in  1912-13,  this  amount  having 
been  due  to  the  latter  company  upon  completion  of  the  railroad.  An  initial 
dividend  of  4%  was  paid  on  the  common  stock  May  1,  1913.  The  preferred 
stock  is  entitled  to  6%  per  annum  non-cumulative  dividends.  An  initial  semi- 
annual dividend  of  lj^%  was  paid  on  the  preferred  stock  in  August,  1909; 
3%  was  paid  in  1909-10;  also  4%  in  1910-11,  5%  in  1911-12  and  6%  in  1912— 
13  and  in   1913-14. 

The  First  Mortgage  bonds  of  the  Cuba  R.  R.  mature  July  1,  1952,  bear 
interest  at  5%  and  may  be  issued  at  $20,000  per  mile.  $12,030,000  of  these 
bonds  were  outstanding  on  June  30,   1913. 

152 


AND     CENTRAL     AMERICA 

This  company  (Registered  in  1899)  as  of  June  30,  1913,  operated  337  miles 
of  railway  located  in  the  central  part  of  the  Island  of  Cuba.  The  principal 
lines  are  as  follows: 

Cienfuegos  to  Concha  or  Isabela  De  Sagua 68  miles 

Cifuentes  to  Esperanza 18  " 

Santa  Clara  to  Crucas 24  " 

Palmira  to  Aguada 40  " 

Caibarien  to  Siliecito 55  " 

Carajuani  to  Placetas  del  Sur 17  " 

San  Juan  to  Matagua 16  " 

Caibarien  to  Placetas 23  " 

Branch  to  Caguaguas 28  " 

A  total  of  69  miles  (partly  included  above)  were  opened  to  traffic  during 
1912-13. 

The  dividends  paid  by  this  company  during  recent  years  have  been  as 
follows: 

1900-1   '01-2  & '02-3     '03-4  to '11-12 '12-13 

Preference  % 5}4  5XA  5H  5lA 

Ordinary  % 10  2  3 

As  of  June  30,  1913,  the  capitalization  of  the  company  authorized  and 
outstanding  was  as  follows: 

Authorized  Issued 

Preference  Shares  {5lA%  cum.)£l,400,000  £'1,200,000  $6,000,000 

Ordinary  Shares 900,000  900,000  4,500,000 

Debenture  Bonds  (4}^%).  .  .         1,000,000  *887,300  *4,436,500 

Debenture  Stock  (5%) 1,100,000  900,000  4,500,000 

*Of  which  amount  £88,700  ($443,500)  has  been  redeemed  by  Sinking  Fund. 

The  par  value  of  the  Preference  and  Ordinary  Shares  is  £10.  The  Prefer- 
ence Shares  have  the  priority  as  to  capital.  The  (Mortgage)  Debenture 
Bonds  and  the  Debenture  Stock  are  redeemable  at  110  on  6  months'  notice. 

The  balance  sheet  of  the  Company  as  of  June  30,  1913,  showed  a  consider- 
able margin  of  Current  Assets  over  Current  Liabilities,  also  large  Reserve 
Funds. 

Late  in  1913  the  United  Rys.  of  the  Havana  &  Rigla  Warehouses  offered 
£7, 10s  of  their  Ordinary  Stock  carrying  divdiends  from  July  1,  1913,  for 
each  £10  Ordinary  Share  of  the  Cuban  Central  Ry.  carrying  dividend  due 
July  1,  1913.  About  84,000  of  the  90,000  shares  were  acquired  up  to  about 
January  15,  1914. 

The  Cuban  Central  Rys.  had  in  service  June  30,  1913,  75  locomotives,  66 
passenger  cars  and  2,411  freight  cars. 

During  1912-13  the  railway  handled  2,230,551  tons  of  sugar  cane,  416,091 
tons  of  sugar,  82,555  tons  of  molasses,  20,282  tons  of  tobacco,  115,185  tons 
of  building  material  and  285,054  tons  of  general  goods. 


153 


THE     RAILWAYS     OF     SOUTH 


Guantanamo  &  Western  R.  R. 


Avg.  Miles 
Year  Oper.  Gross 

1911-12  75  $382,342 


Stock  Outstanding 

June  30,1913 

Common $2,750,000 

♦Preferred  1st  (7%) 2,750,000 

♦Preferred  2nd  (5%) 250,000 


(CUBA)               Avg.  Miles 

Deficit                  Year         Oper. 

Gross 

Deficit 

$14,645        |        1912-13        75 

$440,774 

$10,105 

I 


Bonds  Outstanding 

June  30,  1913 

Fixed  Interest $600,000 

tEquipment 185,000 

Notes 300,000 


*See  Notes  as  to  provisions  governing  the  payment  of  dividends. 

t$25,000  paid  in  July,  1913. 

Bills  Payable,  June  30,  1913,  $89,119. 

Capitalization 

Tota 

Stock $5,750,000 

Bonds 1,085,000 

Total 6,835,000 


Per   Mile 

$76,667 

14,466 

91,133 


Fixed  Charges  below  include  $6,728  loss  from  Outside  Operations  (largely  Boqueron 
Dock  and  Warehouse  Operations). 

Income  Account  Year  Ending  June  30,  1913 

Average  miles  operated,  13. 

Gross  Receipts 

Operating  Expenses 

Net  Receipts 

Total  Net  Income 

Fixed  Charges 

Deficit 


Operating  Expenses 

Maintenance  of  Way , 

Maintenance  of  Equipment 

Conducting  Transportation 

General  Expenses 

Ratio  of  Operating  Expenses  to  Gross  Receipts,  85.7  per  cent. 


Appropriation  of  Gross  Income 

For  Maintenance  Expenses 

For  Conducting  Transportation  and  General  Expenses 

For  Fixed  Charges 

For  Surplus 


Total 

$440,774 
377,874 
62,900 
62,900 
73,005 
10,105 

Per  Mile 
$5,877 
5,038 
839 
839 
974 
135 

$121,415 

70,540 

144,794 

41,125 

$1,619 

940 

1,931 

548 

1912-13 

43.5% 
42.2% 
16.6% 
Deficit 

1911-12 

43.5% 
42.1% 
18.2% 
Deficit 

NOTES 

This  company  is  the  successor  by  reorganization  to  the  Cuba  Eastern 
R.  R.,  Cuba  Eastern  Terminal,  Northeastern  Cuba  R.  R.  and  Eastern  R.  R. 
of  Cuba,  foreclosed  in  1909.  The  line  is  located  in  the  eastern  part  of  Cuba  and 
extends  from  Boqueron  on  the  south  coast  via  Guantanamo  to  a  connection 
with  the  Cuba  R.  R.  at  San  Louis. 

The  First  Mortgage  6%  Bonds,  $600,000  of  which  are  outstanding,  mature 
1929.  They  were  offered  for  subscription  at  the  date  of  the  reorganization 
at  85,  with  a  bonus  of  25%  each  in  new  Common  and  Preferred  Stock. 
$300,000  Two-Year  Redeemable  Notes  were  issued  in  1912-13. 

The  First  Preferred  Stock  and  the  Second  Preferred  Stock  are  entitled 
to  dividends  of  7%  and  5%  per  annum  respectively  in  priority  to  the  Common 
Stock.  After  the  Common  Stock  receives  in  any  year  5%  all  classes  of  stock 
share  pro  rata  in  further  dividends.  No  dividends  are  paid.  $2,463,000  First 
Preferred  Stock,  and  $2,463,000  Common  Stock  were  issued  as  per  plan  of 

154 


AND     CENTRAL    AMERICA 

reorganization  (1909)  and  offered  in  exchange  for  $4,927,000  bonds  of  the 
former  operating  companies  (see  above).  All  bondholders  received  $500 
each  in  new  Common  and  First  Preferred  Stock  for  each  $1,000  bond  owned. 
$110,500  (entire  outstanding  amount)  of  Second  Preferred  Stock  was  issued  in 
exchange  of  $221,000   Debentures. 

As  of  June  30,  1913,  Working  Assets  amounted  to  $205,957,  and  Working 
and  Accrued  Liabilities  (including  $89,119  Bills  Payable),  were  $122,527. 


United  Rys.  of  the  Havana  &  Regla  Warehouses,  Ltd. 

Avg.  Miles  Avg.  Miles 

Year         Oper.         *Gross          *Surplus  Year        Oper.         *Gross           *Surplus 

1911-12         672       $7,073,961     $2,589,540  |        1912-13        673       $8,133,370     $3,102,795 

*In  Pounds  Sterling— Gross:     1911-12,  £1,414,792;  1912-13,   £1,626,674,  and  Surplus: 
1911   12,   £517,908;  1912-13,   £620,559. 

Stock  Outstanding  fBonds  Outstanding 


June  30,  1913 

Ordinary $29,202,150 

Deferred  Ordinary 2,467,171 

♦Preferred  (5%) 11,413,560 

♦Cumulative. 

tSee  Notes  for  description  of  issues. 


June  30,  1913 

Deb.  Stock  (5%)    $22,492,000 

Deb.  Stock  (4 J£%) 4,943,750 

Deb.  Stock  (4%s 6,407,277 


Capitalization 

Total Per  Mile 

Stock £8,616,576          $43,082,881  $64,016 

Bonds 6.768,605            33,843,027  50,287 

Total 15,385,181            76,925,908  114,303 

Fixed   Charges   below   include   $20,000   (£4,000)   for   Lease   ol    Marianao   Ry.,   $258,750 
(£51,750)  for  Taxes,  Stamp  Duties,  etc.,  and  £23,625  Hire  of  Equipment  Expenditure. 

Income  Account  Year  Ending  June  30,  1913 

Average  miles  operated,  673. 

Operating  Revenues 

Operating  Expenses 

Net  Operating  Revenues    

Other  Income 

Total  Net  Income  

Fixed  Charges      

♦Surplus 


Maintenance  of  Way 

Maintenance  of  Equipment 

Traffic  and  Transportation  Expenses 
General  Expenses 


Operating  Expenses 


To 

£1,626,674 

tal 

$8,133,370 

Per  Mile 
$12,085 

892.347 

4,461,735 

6,630 

734,327 

3,671,635 

5,455 

274,331 

1,371,655 

2,038 

1,008,658 

5,043,290 

7,493 

388,099 

1,940,495 

2,883 

620,559 

3,102,795 

4,610 

nses 

£186,816 

$934,080 

$1,388 

169,028 

845,140 

1,256 

449,711 

2,248,555 

3,341 

86,792 

433,960 

645 

Ratio  of  Operating  Expenses  to  Operating  Revenues,  54.9  per  cent. 

♦This  Surplus  before  deducting  $625,000  (£125,000)  transferred  to  Reserve  Account, 
$250,000  (£50,000)  transferred  to  General  Renewals  Reserve;  also  $100,000  (£20,000) 
and  $25,000  (£5,000)  transferred  to  Pension  and  Insurance  Accounts. 

Other  Income  above  includes  $36,920  (£7,380)  Regla  Warehouses— Balance:  $26,450 
Reserves  for  Revenue  Proportion  of  Special  Works;  $437,630  (£87,526)  from  Interest  on 
Bonds  of  the  Havana  Central  R.  R.,  and  $864,695  (£172,937)  Interest  and  Dividends  on 
Investments. 

Appropriation  of  Gross  Income 


For  Maintenance  Expenses 

For  Traffic,  Transportation  and  General  Expenses. 

For  Fixed  Charges 

For  Surplus 


1912-13 

1911-12 

18 

7% 

20 

4% 

28 

3% 

26 

2% 

20.4% 

22 

4% 

32 

6% 

31 

0% 

100.0%         100.0% 


155 


THE     RAILWAYS     OF     SOUTH 

NOTES. 

The  preference  stock  of  this  company  is  limited  to  cumulative  dividends  of 
5%  per  annum.  5%  dividends  were  paid  on  this  class  of  stock  in  1911-12, 
and  in  1912-13.  4j^%  was  paid  on  the  ordinary  stock  in  191 1-12.  In  1912- 
13  the  dividend  rate  on  the  ordinary  stock  was  increased  to  5%.  No  dividends 
were  paid  on  the  deferred  ordinary  stock.  Additional  deferred  ordinary  stock 
to  the  amount  of  £95,626  4s.  lid.  is  reserved  to  acquire  additional  shares  of 
the  Havana  Central  R.  R.  (acquired  1907).  £8,754  preference  stock  and 
£95,626  ordinary  were  as  of  June  30,  1913,  reserved  to  acquire  additional 
stock  of  the  Western  Ry.  of  Havana  (see  following)  and  £1,208,533  preference 
and  £10,940  deferred  ordinary  stock  has  been  authorized  but  has  not  been 
issued. 

Debenture  and  Debenture -Stock  issues  of  this  company  at  June  30,  1913, 
were  as  follows:  5%  "A"  Irredeemable  Debenture  Stock,  £380,000;  5% 
Consolidated  Irredeemable  Debenture  Stock,  £1,425,900;  5%  Irredeemable 
Debenture  Stock  (1906),  £2,692,500  (an  additional  £131,600  are  reserved 
to  redeem  a  like  amount  of  bonds  of  the  Old  Company);  4%  Redeemable 
Debentures  and  Debenture  Stock,  £1,281,455  (£7,217  additional  Debentures 
are  available  for  exchange  of  Havana  Central  R.  R.  5%  bonds  and  £34,428 
are  unissued);  4}^%  Redeemable  Debentures,  £988,750. 

The  United  Rys.  of  the  Havana  &  Regla  Warehouses,  Ltd.,  was  incorporated 
in  1898,  and  has  since  acquired:  (1)  in  1906,  the  Cardenas  &  Jucaro  Ry.;  (2) 
in  1906,  the  Matanzas  Ry.;  (3)  in  1907,  the  Havana  Central  R.  R.;  (4)  in 
1911-12,  the  Western  Ry.  of  Havana,  Ltd.  The  consolidated  company 
operates  the  largest  railway  mileage  in  the  Island  of  Cuba;  its  gross  receipts 
are  likewise  considerably  the  largest.  The  main  line  extends  from  Havana 
to  Santa  Clara  (176  miles)  where  connection  is  made  with  the  Cuba  R.  R. 
main  line,  affording  a  direct  route  from  Havana  to  Santiago  and  other  eastern 
points.  Lines  extend  to  all  of  the  important  cities  in  the  western  portion  of 
the  island  connecting  Havana  with  Cardenas,  Matanzas,  Cienfuegos  and 
other  important  points.  The  Western  Ry.  of  Havana,  Ltd.  (acquired  1911- 
12),  extends  from  Havana  to  Guane  near  the  western  end  of  the  island  (147 
miles)  with  branches  (about  23  miles). 

To  acquire  the  £1,100,000  stock  of  the  Western  Ry.  of  Havana,  Ltd.,  the 
United  Rys.  of  Havana  offered  £4  15s.  of  5%  cumulative  preferred  stock  and 
£10  of  ordinary  stock  for  each  £10  share  of  the  former.  Over  98%  of  the 
total  stock  was  thus  acquired.  The  Western  Rys.  of  Havana  paid  a  7% 
dividend   in    1913. 

The  balance  sheet  as  of  June  30,  1913,  showed  among  the  Assets,  Invest- 
ments at  cost  (including  £296,785  Deferred  Ordinary  Stock  of  the  company 
held  by  the  Trustees  for  the  5%  Irredeemable  Debenture  Stock),  $19,351,605 
(£3,870.321).  This  did  not  include  $5,874,445  (£1,174,889)  First  Mortgage 
5%  bonds  and  stock  of  the  Havana  Central  R.  R.  acquired  by  an  issue  of 
this  company's  4%  Debentures  and  Deferred  Ordinary  Stock  at  par.  These 
securities  are  held  as  security  for  the  4%  Debentures  of  the  United  Rys. 
There  was  also  Cash,  Stores,  etc.,  on  hand,  Bills  Receivable,  etc.,  to  an  amount 
considerably  in  excess  of  Current  Liabilities.  The  company's  Reserves, 
including  amounts  transferred  from  the  surplus  of  1912-13  to  the  various 
accounts,   amounted  to  the  following: 

Total 

Reserve  Account $2,500,000     £500,000 

Reserve  for  General  Renewals 639,170         127,834 

Pension  Account 100,000  20,000 

Insurance  Account 125,000  25,000 

156 


AND     CENTRAL     AMERICA 

The  stockholders  of  the  United  Rys.  of  the  Havana  &  Regla  Warehouses 
on  December  9,  1913,  approved  of  the  acquisition  of  the  ordinary  stock  of 
the  Cuban  Central  Rys.  on  the  basis  of  £7  10s.  United  Rys.  stock  for  each 
£10  Cuban  Central  Rys.  stock.  £900,000  Cuban  Central  Rys.  stock  was 
outstanding  June  30,  1913.  This  company  operates  an  important  system 
of  railways  in  Central  Cuba  (Cienfuegos  to  Esperanza,  Sagua  la  Grande, 
Concha,   etc.,   etc.,   309    miles). 

The  railway  handled  in  1912-13  6,749,903  tons  of  freight  of  which  5,417,193 
tons  consisted  of  Sugar  Cane  and  Products. 

See  Cuban  Central  Rys.;  Western  Ry.  of  Havana. 


Western  Ry.  of  Havana. 


Avg.  Miles 
Year  Oper.  Gross 

1909-10  147  $1,241,325     £248,265 

1910-11  147  1,295,755       259,151 

Stock  Outstanding 

June  30,  1913 
Common $5,500,000 


Avg.  Miles 
Year  Oper.  Gross 

1911-12        147  $1,283,270      £256,654 

1912-13        147  1,406,320        281,264 

Bonds  Outstanding 

June  30,  1913 
Fixed  Interest $2,950,000 


Capitalization 

Total 

Stock £1,100,000  $5,500,000 

Debenture  Stock 590,000  2,950,000 

Total 1,690,000  8,450,000 


Income  Account  Year  Ending  June  30,  1913 

Average  miles  operated,  147. 


Gross  Receipts 

Operating  Expenses . 

Net  Receipts 

Other  Income 

Total  Net  Income. . 

Fixed  Charges 

Surplus 


£281,264 

166,220 

115,044 

10,201 

125,245 

34,568 

90,677 


-Total- 


$1,406,320 
831,100 
575,220 
51,005 
626,225 
172,840 
453,385 


Operating  Expenses 


Maintenance  of  Way 

Maintenance  of  Equipment. 
Conducting  Transportation. 
General  Expenses. 


-Total ■ 

£37,991  $189,955 


59,559 
55,359 
13,311 


Ratio  of  Operating  Expenses  to  Gross  Receipts  59.1  per  cent. 

Appropriation  of  Gross  Income 


297,795 

276,795 

66,555 


For  Maintenance  Expenses 

For  Traffic,  Transportation  and  General  Expenses. 

For  Fixed  Charges 

For  Surplus 


Ton   miles  per  mile  of  road,   1912-13,  173,276. 


Per  Mile 

$37,415 

20,068 

57,483 


Per  Mile 
$9,567 
5,654 
3,913 
347 
4,260 
1,176 
3,084 


Per  Mile 

$1,292 

2,026 

1,883 

453 


1912-13 

33 . 5  % 

23 . 6  % 
11.8% 
31.1% 

100 . 0  % 


NOTES. 

This  railway  line  extends  from  Havana  in  a  southwesterly  direction  to 
Pinar  del  Rio,  San  Juan,  Guam  (its  terminus),  etc.  This  is  the  only  railway 
serving  the  state  of  Pinar  del  Rio  and  it  handles  a  considerable  volume  of 

157 


THE     RAILWAYS     OF     SOUTH 

traffic.      The    company  purchased  during  1909-10  the  property  of  the  Vuelta 
Abajo  Steamship  Co.  at  a  cost  of  $55,000  (£11,000). 

There  had  been  issued  to  June  30,  1913,  $2,950,000  (£590,000)  of  an  au 
thorized  issue  of  $3,666,665  (£733,333),  4% >%  Debenture  Stock.  The  proceeds 
of  the  Debentures  were  largely  used  to  retire  6%  Debentures. 

The  stock  of  the  company  received  dividends  at  the  rate  of  7%  per  annum 
from  1905  to  1913  inclusive. 

On  November  18,  1911,  the  tockhulders  of  the  Western  Ry.  of  Havana- 
were  offered  by  the  United  Rys.  of  the  Havana  &  Regla  Warehouses  (which 
see)  £4.  15s  in  the  latter's  5%  cumulative  preference  shares  and  £10  of  or- 
dinary shares  for  each  £10  share  of  the  Western  Ry.  of  Havana  Stock.  Over 
98%  of  the  stock  was  thus  acquired  by  the  United  Rys.  of  the  Havana  & 
Regla  Warehouses. 


158 


AND     CENTRAL     AMERICA 


HAITI  AND  THE  DOMINICAN  REPUBLIC. 


Haiti  and  Dominican  Republic. 

The  railways  of  the  Dominican  Republic  have  a  total  length  of  approx- 
imately 150  miles  exclusive  of -about  225  miles  of  private  lines  on  large  estates. 

A  law  of  the  Republic  is  that  30%  of  the  internal  revenue  shall  be  applied 
to  the  building  of  railways,  either  by  the  government  or  by  private  enterprise. 
In  the  latter  case  interest  may  be  paid  up  to  6%  of  the  cost  and  a  bonus  of 
$2,000  per  kilometer  may  be  allowed  by  the  Government. 

The  Government  owns  and  operates  the  Dominican  Central  Ry.,  running 
between  Puerto  Plata  and  Santiago,  with  a  branch  to  Moca.  About  60  miles 
are  in  operation  and  the  company  owns  approximately  13  locomotives,  8 
passenger  cars  and  103  freight  cars. 

The  other  important  railway  of  the  Republic,  the  Samana  &  Santiago  Ry., 
is  described  elsewhere. 

Work  has  started  upon  the  railroad  to  run  from  Barahona  to  Neybo,  and 
then  along  Lake  Enriquillo  to  the  Haitian  frontier,  the  concession  for  which 
was  granted  by  the  Dominican  Congress  in  July,  1913. 

This  railroad  will  open  a  new  and  undeveloped  part  of  the  country.  Two 
sawmills  are  now  in  operation  within  approximately  five  miles  of  Barahona 
but  their  products  are  now  taken  to  the  town  by  oxcarts  for  shipment.  It 
is  planned  to  devote  the  country  pierced  by  the  railroad  to  sugar  and  alfalfa, 
for  both  of  which,  it  is  believed,  the  soil  is  well  adapted. 

In  addition  to  the  stations  and  warehouses  necessary  for  the  railroad,  a 
dock  or  pier  and  a  service  of  boats  on  the  lakes  along  the  road  is  authorized 
by   the   concession. 

The  railway  development  of  Haiti  is  in  its  infancy.  The  National  R.  R. 
of  Haiti  (described  elsewhere)  has  under  construction  (partly  completed) 
about  320  miles  of  railroad,  while  a  concession  has  been  granted  for  a  line 
from  Leoganes  to  Aux  Cayes,  in  the  southern  part  of  the  Republic,  total 
about  100  miles.  At  Leoganes,  this  new  railroad  will  connect  with  the  Central 
R.  R.  of  Haiti,  extending  to  Port  au  Prince.  There  is  also  in  operation  on  the 
island  a  small  railroad  extending  from  the  Port  of  Gonawes  to  the  town  of 
Ennery,  20  miles  inland.    The  line  is  to  be  extended  to  St.  Michel. 


Central  R.  R.  of  Haiti. 

The  company  owns  a  railway  extending  from  Port-au-Prince,  the  capital 
of  Haiti,  to  the  Dominican  frontier  (35  miles),  and  from  Port-au-Prince  to 
Carrefour  and  Leogone  (22  miles).  Further  extensions  are  planned.  The 
gauge  of  the  railway  is  2  ft.  6  in.  and  the  rail  is  of  45  lb.  weight.     The  com- 

159 


THE     RAILWAYS    OF    SOUTH 

pany  owns  a  concrete  pier  in  Port-au-Prince  and  has  a  40-year  monopoly  for 
the  lighting  of  that  city  and  Cape  Haitien. 

The  company  at  last  reports  had  outstanding  the  following  securities: 

Stock  (par  $100) $1,450,000 

First  Collateral  6%  bonds  due  1919 800,000 

Second  Collateral  6%  bonds  due  1919 200,000 

The  equipment  in  service  consisted  at  last  accounts  of  the  following:  20 
locomotives,  26  passenger  cars  and  127  freight  and  service  cars. 

This  railway  is  controlled  in  the  United  States. 

The  Income  Account  of  the  Central  R.  R.  of  Haiti  (exclusive  of  earnings 
of  Subsidiary  Companies)  for  the  year  ending  September  30,  1912,  was  as 
follows: 

Interest    received   on  Securities,    etc.,  and    Miscellaneous 

Receipts $111,316 

Interest  on  Bonds  and   Miscellaneous  Expenses 94,524 

Net  Earnings 16,792 


National  R.  R.  of  Haiti. 

NOTES 

This  Company  has  authorized  and  outstanding  $7,000,000  common  stock 
and  $2,500,000  First  Mortgage  6%  bonds  due  1960.  The  Government  of 
Haiti  guarantees  interest  at  6%  on  about  $32,250  per  mile;  also  a  Sinking  Fund 
of  H%  beginning  1916.  The  guarantees  are  to  be  secured  by  certain  export 
duties.  The  bonds  are  callable  at  110  as  a  whole  or  after  1916  at  par  in  any 
part. 

No  dividends  have  been  paid  on  the  stock  of  this  company. 

The  construction  work  on  the  National  R.  R.  of  Haiti,  which  is  being  built 
by  the  Caribbean  Construction  Co.,  of  New  York,  is  progressing  rapidly. 
This  enterprise  gives  employment  to  4,000  or  5,000  Haitians,  besides  a  staff  of 
Americans. 

Two  sections  of  the  road,  aggregating  34  miles,  were  in  operation  September, 
1913;  five  sections,  totaling  91  miles, were  under  construction;  and  the  survey 
of  the  remainder  of  the  route  has  been  completed.  It  was  expected  that  the 
portion  of  the  line  from  Port  au  Prince  to  St.  Marc,  65  miles,  would  be  opened 
to  traffic  in  1913,  and  that  other  sections  under  construction  would  be  finished 
during  the  year.  This  road  will  doubtless  aid  much  in  the  development  of 
vast  stretches  of  rich  lands  in  the  northern  part  of  the  island  and  enable 
producers  to  find  markets  for  their  goods. 

The  main  line  of  this  railroad,  when  completed,  will  extend  from  Port  au 
Prince  to  St.  Marc  (53  miles),  from  there  it  will  follow  the  valley  of  the  Arti- 
bonite  River  for  about  115  miles,  and  then  will  run  northward  through  Bahon, 
Grande  Riviere,  etc.,  to  Cape  Haitien  the  principal  northern  seaport  of  Haiti, 
205  miles  form  Port  au  Prince.     A  branch  is  to  be  constructed  from  Hinche 

160 


AND     CENTRAL     AMERICA 

(on  the  main  line)  eastward  to  Gonaives,  about  80  miles,  from  which  point 
the  branch  will  be  extended  northward  for  about  35  miles  to  Port  de  Paix. 
The  total  length  of  the  system  will  be  about  320  miles.  The  gauge  is  3  feet  6 
inches. 

The  American  syndicate  controlling  this  railroad,  has  secured  from  the 
Government  of  Haiti  a  plantation  concession.  The  company  will  cultivate 
bananas  and  other  tropical  fruit.  Sugar  cane,  rubber,  cacao,  etc.,  will  also  be 
cultivated. 

The  unsettled  condition  of  the  Republic  has  greatly  hindered  t-he  successful 
completion  of  this  railroad. 


Samana  &  Santiago  Ry. 

Avg.  Miles  Avg.  Miles 

Year  Oper.  Gross  Revenue  Year  Oper.  Gross  Revenue 

1909  80             $262,758          £52,552        |        1911              80             $328,786  £65,757 

1910  80              289,952            57,990        |        1912             80              377,500  75,500 

Stock  Outstanding  Debentures  Outstanding 

December  3,  1912  December  31,  1912 

Common $2,128,400        I        Debentures  (3%) $317,500 

Preferred  (6%) 491,350        | 

Capitalization 

■ Total— Per  Mile 

Stock                  £523,950          $2,619,750  $32,747 

Bonds' '                         63,500                317,500  3,969 

Total.'.'. 587,450            2,937,250  36,716 

Fixed  Charges  below  include  $6,385  (£1,277)  for  rentals  of  Macoris  Ry.,  this  representing 
40%  of  the  latter's  Earnings. 

Income  Account  Year  Ending  December  31,  1912 

Average  miles  operated,  80. 

Total Per  Mile 

Gross  Receipts £75,500             $377,500  $4,844 

Operating  Expenses 29,391               146,957  1,837 

Net  Receipts 46,109               230,543  3,007 

Total  Net  Income 46,109              230,543  3,007 

Fixed  Charges 3,182                 15,910  199 

♦Surplus 42,927              214,633  2,808 

Operating  Expenses 

Maintenance  of  Way £8,402              $42,012  $525 

Maintenance  of  Equipment  and  Locomotive  Power.            9,113                45,564  569 

Traffic  and  Transportation  Expenses 9,165                45,827  573 

General  Expenses 2,711                 13,554  170 

Ratio  of  Gross  Receipts  to  Operating  Revenues  37.9  per  cent. 

Appropriation  of  Gross  Income 

1912-13 

For  Maintenance  and  Locomotive  Expenses 22.6% 

For  Traffic,  Transportation  and  General  Expenses 15.3% 

For  Fixed  Charges 4.1% 

For  Surplus 58.0% 

100.0% 
161 


THE     RAILWAYS     OF     SOUTH 

NOTES 

The  Capital  of  this  Company,  authorized  and  outstanding,  is  as  follows: 

Authorized  Outstanding 

Ordinary  Shares— (Par  £10) £480,000  £425,680 

Preferred  Shares— (Par  £10) 120,000  98,270 

3%  Debentures 75,000  63,500 

In  1912  dividends  of  6%  and  8%  respectively  were  paid  on  the  preference 
and  ordinary  shares. 

As  of  December  31,  1912,  the  balance  sheet  showed  Current  Assets  and  Stores 
on  hand  to  the  amount  of  £31,419  as  against  Current  Liabilities,  £2,016. 

The  Samana  &  Santiago  Ry.  extends  from  Sanchez  on  the  Bay  of  Samana 
to  La  Vega,  with  a  branch  to  Salcedo;  33%  miles  of  main  track  are  laid  with  45- 
pound  rail  and  46 Yi  miles  with  35-pound  rail;  IXYi  miles  of  track  are  laid  on 
steel  ties. 

Plans  have  been  completed  for  the  extension  of  the  Moca  branch  to  connect 
with  the  Dominican  Central  Ry.,  and  negotiations  are  in  progress  between 
the  Samana  &  Santiago  Ry.  and  the  Government  to  build  an  extension  to 
connect  this  railway  with  the  capital  (Santo  Domingo).  Preliminary  survey 
work  has  been  started  on  this  extension  which  will  open  up  a  large  fertile 
tract  of  country  hitherto  without  transportation  facilities. 

The  control  of  this  railway  is  held  in  Scotland. 


162 


AND     CENTRAL     AMERICA 


PORTO  RICO  AND  JAMAICA. 


The  greater  part  of  the  railroad  mileage  of  this  island  is  operated  by  the 
American  Railroads  in  Porto  Rico.  This  railroad  system  extends  from  San 
Juan,  the  capital  and  principal  port,  via  Arecibo,  Aquadillo,  Rencon  and 
Mayaguez  to  Ponce,  about  172  miles,  thence  to  Guayama,  about  37  miles; 
together  with  various  branches. 

Another  line,  the  Porto  Rico  Rys.,  while  primarily  a  tramway  line,  operates 
a  small  steam  railway  mileage. 

There  are  practically  no  other  railway  lines  in  the  island,  the  interior  being 
almost  without  railwav  communication. 


are 


The  railroads  in  Jamaica  are  under  Government  ownership  and  therefore 
_.e  of  but  little  interest  to  the  investing  public.  The  lines  extend  between 
San  Antonio  and  Kingston;  Kingston  and  Montego  Bay,  and  enjoy  a  con- 
siderable traffic  both  in  freight  and  passengers. 

There  were  a  total  of  184J4  miles  of  road  in.operation  December  31,  1911, 
including  about  25  miles  of  road  owned  by  the  United  Fruit  Co.,  which  were 
constructed  principally  to  carry  bananas  to  the  coast.  The  earnings  from 
the  operations  of  the  Government-owned  lines  was  £161,632  ($808,160)  and 
the  expenses  £109,942  ($549,740);  518,474  passengers  were  carried. 

The  United  Fruit  Co.  also  has  about  25  miles  of  railways  constructed  to 
carry  bananas  to  the  plantations  to  the  coast. 


163 


THE     RAILWAYS     OF     SOUTH 
American  R.  R.  of  Porto  Rico. 

Avg.  Miles  Avg.  Miles 

Year                    Oper.  Gross  Year                 Oper.  Gross 

1909  .  .  .  $960,604  1911                     .  .  .  $1,519,030 

1910  .  .  .  1,320,473  1912                    255  1,428,098 

Stock  Outstanding  Bonds  Outstanding 

Dec.  31,  1912                                                              Dec.  31,  1912 
♦Common $1,000,000  tFixed  Interest $1,322,800 

*$800,000  unissued. 

tDoes  not  include  bonds  of  Spanish  company. 

Fixed  Charges  below  include  $9,709  General  Expenses  at  New  York  and  Paris;  $7,025 
General  Expenses  of  Spanish  company,  $71,679  Annuities  on  the  amount  lent  by  the 
A.  R.  R.  of  P.  R.  for  purchase  of  rolling  stock,  improvements,  and  new  lines  (see 
Notes),  and  $199,080  interest  and  sinking  fund  on  bonds  of  the  Spanish  Company  and 
taxes  paid  to  the  Treasury  on  the  bonds  dealt  in  on  the  French  market.  The  Fixed 
Charges  and  Surplus  below  may,  therefore,  be  said  to  be  those  of  the  Spanish  Company. 

Income  Account  Year  Ending  December  31,  1912 

Average  miles  operated,  255.  Total  Per  Mile 

Operating  Revenues $1,428,098  $5,600 

Operating  Expenses 862,857  3,384 

Net  Operating  Revenues 565,241  2,216 

Total  Net  Income 565,241  2,216 

Fixed  Charges  (See  Notes) 287,492  1,127 

♦Surplus  (See  Notes) 277,749  1,089 

Operating  Expenses 

Maintenance  of  Way $228,040  $894 

Maintenance  of  Equipment 242,946  953 

Conducting  Transportation ". 332,559  1,304 

General  Expenses  (in  Porto  Rico) 59,312  233 

Ratio  of  Operating  Expenses  to  Operating  Revenues  60.4  per  cent. 

*Of  the  Surplus  ($277,750)  $71,405  was  paid  to  the  A.  R.  R.  of  P.  R.  as  managing  allow- 
ance and  the  balance  ($206,345)  was  payable  to  the  Spanish  Company. 

Appropriation  of  Gross  Income  1912 

For  Maintenance  Expenses 33.0  % 

For  Traffic,  Transportation  and  General  Expenses 27.4  % 

For  Fixed  Charges 20.1  % 

For  Surplus 19.5  % 

100.0  % 

NOTES 

The  American  R.  R.  Co.  of  Porto  Rico  operates  about  255  miles  of  railroad 
in  the  island  of  Porto  Rico,  as  managers  for  a  Spanish  company,  owning 
practically  the  entire  system.  The  railroad  extends  from  San  Juan,  the 
capital  and  principal  port  westward  via.  Bayamon,  Arecibo,  etc.,  to  Agua- 
dilla;  thence  southward  to  Anasco  and  Mayaguez  and  eastward  to  Yanco, 
Ponce  (the  second  largest  city  in  the  island),  and  Guayama.  There  are 
branch  lines  running  to  Boqueron,  Sabana  Grande,  Carolina,  etc.  The 
railroad  closely  follows  the  coast  line  of  the  island.  In  1913,  a  new  station 
and  wharf  at  San  Juan  to  cost  about  $100,000  and  $200,000  respectively 
were  nearly  completed.  The  necessary  cost  was,  or  will  be,  advanced  by 
the    Spanish    company. 

On  November  15,  1906,  the  A.  R.  R.  fo  P.  R.  lent  the  sum  of  $1,194,644 
for  the  purchase  of  rolling  stock,  improvements  and  new  lines,  on  which 
an  annuity  of  $71,679  is  paid  to  them. 

The  A.  R.  R.  of  P.  R.,  as  managers  for  the  Spanish  company  owning  the 
property,  reported  the  following  Net  Income  for  1912: 

164 


AND     CENTRAL     AMERICA 


♦Annuity  6%  on  $1,194,644 $71,679 

*Managing  Allowance 71,405 

Interest  received  on  Deposits  and  Investments  7,004 

Total  Receipts $150,088 

Interest  on  Debentures  and  on  short  loans,  to- 
gether with  redemption  of  portions  of  same 
corresponding  to  the  liquidation  of  the  con- 
struction account $77,727 

Redemption     premium     on     bonds     redeemed 

during  1912 2,352 

Taxes  paid  for  quoting  Debentures 5,140 

Additional  General   Expenses   (above  amount 

authorized  in  Operating  Expenses) 2,388 

Total  Expenses $87,607 

Net  Profit  for  Year 62,481 

The  balance  carried  forward  from  1911 $121,365 

Less  amount  appropriated  to  the  payment  of 
the  dividend  for  1911,  the  bonus  to  the 
Stockholders,  etc 48,233 

Balance $73,132 

This  balance  added  to  the  profits  for  1912  makes  a  total  of      $135,613 

♦Included  in  Fixed  Charges  in  the  Table,  page  165. 

The  earnings  of  this  railroad  for  the  year  1912  were  somewhat  affected  by 
an  outbreak  of  bubonic  plague. 

$12,100  A.  R.  R.  of  P.  R.  Debentures  were  drawn  for  redemption  during 
1912.     These  Debentures  are  listed  in  Paris. 


Porto  Rico  Rys. 

This  company  operates  a  steam  railway  18  miles  from  Rio  Piedras  (nine 
miles  from  San  Juan)  to  Caguas.  It  controls  also  the  entire  electric  railway, 
electric  light  and  power  business  of  San  Juan  (the  capital),  San  Turce  and  Rio 
Piedras,  also  electric  lighting  franchises  and  a  number  of  other  towns  and 
cities.  The  steam  railway  is  of  metre  gauge.  Caguas  its  terminal  is  the 
headquarters  of  the  Porto  Rican  Leaf  Tobacco  Co.,  and  the  railroad  will 
haul  all  of  that  company's  freight  between  that  point  and  San  Juan  until 
1916,  a  10-year  conract  having  been  made  to  that  effect  in  1906. 

The  Income  Account  of  this  company,  1908  to  1912  inclusive,  follows  (year 
ending  December  31): 

Gross       Total  Net      Interest  and 
Earnings       Income       Sinking  Fund       Surplus 


1908. 
1909. 
1910. 
1911. 
1912. 


Gross 

Total  Net 

Interest  and 

Earnings 

Income 

Sinking  Fund 

Surplus 

$376,244 

$172,599 

$167,265 

$5,334 

409,031 

194,344 

171,390 

22,954 

561,662 

267,759 

173,429 

94,330 

748,802 

379,784 

174,265 

205,519 

828,084 

373,405 
165 

160,016 

213,389 

THE    RAILWAYS    OF    SOUTH 


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RAILWAYS  OF  SOUTH  AND   CENTRAL  AMERICA 


APPENDICES. 


APPENDIX   I 

A  table  showing  estimated  mileage  of  railways  in  the  countries  covered  by 
this  book,  1900-01  and  1912-13. 

Mileage 

Country                                                                         1900-01  1912-13 

Argentine  Republic 10,269  20,400 

Barbados 24  28 

Bolivia *500  796 

Brazil 8,718  14.213 

British  Honduras -  " 

Chile 2,880  :  -00 

Columbia t340  614 

Costa  Rica 175  *27 

Cuba 950 

Dominican  Republic 116  (b     " 

Ecuador 65  396 

Guatamala 129  350 

Guiana— British M  94 

Dutch 104 

French 0  0 

Haiti 10  64 

Honduras 

Jamaica :-:  210 

"Mexico 9.600  260 

Nicaragua 140  191 

Panama  &  Canal  Zone 160  :    ; 

Paraguav *156 

Peru...! (a)   1,035  1,84 

Porto  Rico 137 

Salvador ";  160 

Trinidad 80 

Urueuav 1,0*  1.590 

Venezuela 529  542 

Windward  and  Leeward  Islands 10 

•Estimated. 

tDoes  not  include  Panama  R.  R. 

JIncludes  Panama  R.  R.,  which  in  1900  was  in  Columbian  territ 

(a)  Year  1898. 

(b)  Includes  about  225  miles  of  private  railway  lines  on  the  large  plantation. 

169 


THE     RAILWAYS     OF     SOUTH 


APPENDIX   II 
LATIN-AMERICAN   FOREIGN   TRADE   IN    1912 

Central  and  North  American  Republics 

Countries  Imports  Exports 

Costa  Rica $10,187,686  510,071,144 

Cuba 125,902,241  172,978,328 

Dominican  Republic 8,217,898  12,385,248 

Guatemala 9,822,462  15,156,537 

Haiti  (a) 9,876,555  17,285,485 

Honduras  (b) 4,317,314  3,080,178 

Mexico 91,331,155  148,994,564 

Nicaragua 2,856,305  4,545,075 

Panama 9,871,617  2,064,647 

Salvador 6,774,859  9,942,184 

South  American  Republics 

Countries  Imports  Exports 

Argentina $375,307,865  5465,979,518 

Bolivia 19,308,506  35, 147,965 

Brazil 308,243,736  362,794,846 

Chile 122,075,994  139,878,202 

Colombia 23,964,623  32,221,746 

Ecuador  (c) 11,294,704  12,692,237 

Paraguav 5,124,438  4,084,621 

Peru  (d) 25,066,354  45,871,504 

Uruguay 51,355,200  53,040,000 

Venezuela 20,568,939  25,260,908 

(a)  Fiscal   year   ending    September,  30,    1912.     (b)  Year    1910.     (c)   Year 
1911.      (d)   Figures  taken  from  West  Coast  Leader,  dated  August  7,  1913. 

The   above   returns   were   compiled   largely  from   the   reports  of  the   Pan- 
American  Union  (International  Bureau  of  American  Republics). 


170 


AND     CENTRAL     AMERICA 


APPENDIX  III 

The  following  Table  shows  approximately  the  dates   of  the  earliest  railway 

mileage    constructed  in  each  of  the  various    countries  of  South  and    Central 
America  and  the  West  Indies: 

Cuba    1837 

Jamaica 1845 

British  Guiana     1846 

Chili 1851 

Peru 1851 

Panama 1855 

Brazil 1856 

Argentine 1862 

Paraguay 1863 

Uruguay    1865 

Venezuela 1866 

Honduras 1871 

Bolivia 1873 

Mexico 1873 

Ecuador    1876 

Trinidad    1877 

Nicaragua 1880 

Salvador    1882 

Guatemala 1884 


171 


THE     RAILWAYS     OF     SOUTH 


APPENDIX  IV. 

Quotations  of  Securities. 


LATIN  AMERICAN  COUNTRIES. 

Quotations  mostly  taken  from  "Financial  Review  of  Reviews,"  London. 


172 


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OF  ALL  THE  FINANCIAL  PUBLICATIONS  AVAILABLE, 
WHERE  CAN  YOU   FIND  IN   ONE  SMALL  VOLUME 

complete  descriptions  of  over  4,500  bonds  and  their  mortgages, 
including  practically  every  issue,  listed  and  unlisted,  in  which 
there  has  been  a  quotation  during  1912  and   1913,  and  many  others  ? 

a  complete  record  of  the  firms  dealing  in  each  issue,  including  the 
firms  of  original  issue,  and  a  range  from  current  quotations  classi- 
fied in  conjunction  with  each  description? 

a  five-year  quotation  range  of  High  and  Low,  Bid  and  Asked,  by 
months,  for  over  2,000  obscure  and   unlisted  bond  issues? 

a  six-year  price  range,  together  with  income  yield  and  last  sale  of 
bond  issues  listed  on  the  New   York  Stock  Exchange? 

THE    FITCH 
BOND  BOOK 

contains  more  information  of  hourly  necessity  to  the  bond  man 
than  all  other  financial  publications  combined. 

is  inexpensive  and  satisfies  your  requirements,  either  as  a  bond 
description  or  market  service,  more  effectively  than  other  services 
costing  many  times  as  much. 

is  the  most  exhaustive  market  record  for  trading  or  appraisal 
that  has  ever  been  published  in  any  form. 

Complete  Letter  A  in  booklet  form    sent  on  application 

FITCH  PUBLISHING  COMPANY,  Inc. 
47      BROAD     STREET,      NEW     YORK 


Alfred  L.  Norris  Floyd  W.  Mundy  J.  Norris  Oliphant 

Member  Member  Member 

N.  Y.  Stock  Exchange  Chicago  Stock  Exchange  N.  Y.  Stock  Exchange 


Jas.  H.  Oliphant  &  Co. 

Brokers 


We  have  nothing  to  sell  to  clients  except- 
ing service. 

We  transact  a  general  investment  business  on  a  com- 
mission basis.     Orders  executed  on  all  Exchanges. 

Our  statistical  department  is  well  equipped  with  official 
reports  and  original  data,  and  is  prepared  to  furnish  all  obtain- 
able information  concerning  Railroad  and  Industrial  Corpor- 
ations. 

We  are  prepared  to  furnish  upon  request  lists  of  de- 
sirable investments,  complying  with  the  special  requirements 
of  institutions,  estates  or  individuals. 

We  give  particular  attention  to  individual  investors. 
Dividends  and  interest  collected  and  remitted. 

We  buy  and  sell  on  commission  and  accurately  quote 
all  securities  dealt  in  on  the  New  York  Stock  Exchange, 
Chicago  Stock  Exchange  and  elsewhere. 

We  have  special  facilities  for  the  execution  of  orders 
in  bonds,  which  are  suitable  investments  for  savings  banks 
and  trustees  in  the  various  States,  and  shall  be  pleased  to 
submit  offerings. 


Correspondence  Invited 

61  Broadway,  The  Rookery, 

NEW  YORK  CHICAGO 

Telephone,  Rector  865  Telephone,  Wabash  2114. 


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